BT landline charges 'excessive and unfair' tribunal is told in £1.3m case

31 January 2024 , 09:15

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BT is facing a £1.3 billion compensation claim (Image: PA Wire/PA Images)

The BT tribunal case is unlike any other encountered by regulators, a hearing was told.

The demand for £1.3 billion as compensation for BT customers in this class action claim is described as "remarkable". Founder of Collective Action on Land Lines (Call), Justin Le Patourel, alleges that the telecoms giant charged its customers "excessive and unfair" prices for solo landlines and calls, contravening its special responsibility as a dominant outfit under section 18 of the Competition Act.

Daniel Beard KC, who is representing BT, stated in his documents that it's natural for companies to "seek to maximise their profits and that they price accordingly". He told the tribunal: "I'm going to deal with what is by any measure quite a remarkable claim.

"It's a claim for excessive pricing unlike any that we've seen by regulators exercising their regulatory powers, let alone in any standalone determination." He suggested that the one filing the claim must prove that BT has market dominance, that BT's charges are excessive as per costs, and those prices are unfair.

He added: "It has to do all of that having regard to principles of legal certainty, and those are important principles. What we've heard over the past day and a half does not remotely come close to discharging that burden of proof in relation to any of those three elements."

BT Broadband customers won't have to pay full price until 2024

BT has said that the claim was linked to a technical landline pricing issue which Ofcom sorted out in 2017. The company maintains that its pricing wasn't anti-competitive back then and claims it will "robustly defend" its stance in court.

If the lawsuit is won, customers may receive between £300-400 depending on their contract duration with BT. The trial is anticipated to last eight weeks.

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Lawrence Matheson