Clare Spottiswoode, the former head of an energy regulator, has filed an opt-out claim with the Competition Appeal Tribunal (CAT) targeting Motorola’s pricing of the Airwave network, a mobile communications network used by police, fire, ambulance, and other emergency services in the UK.
Between 2020 and 2023, emergency services reportedly paid inflated fees due to Motorola’s market conduct. The estimated financial loss and damages suffered by the class members amount to between 600 and 650 million pounds.
Spottiswoode, the proposed class representative (PCR), asserts that Motorola held a dominant position within the relevant market and imposed excessive and unfair prices for Airwave services. While the claims are not “follow-on”, they are reported to stem from violations of competition law that closely resemble the conclusions drawn in a market investigation carried out by the Competition and Markets Authority (CMA) between 2021 and 2023.
In December 2023, the CMA dismissed Motorola’s appeal of its finding that Motorola was “excessively pricing due to its virtually unconstrained monopoly on providing communications network services to the UK emergency services.” The dismissal of Motorola’s appeal reduced the price of its services to emergency services by almost 200 million pounds per year.
The Home Office of the United Kingdom will cover the legal expenses associated with the litigation. The PCR is represented by Ashurst.
Motorola said it plans to defend the claim vigorously. A representative from the company emphasized that Motorola inherited the government-approved contract and price and has invested hundreds of millions in providing a service that it deems to be “exceptional” and “excellent value for money.”
The proposed class action is estimated to include between 400 and 2,000 class members. The PCR defines the proposed class as “all purchasers of Airwave Services during the claim period.”
Clare Spottiswoode is already a class representative in another case before the Tribunal: Case 1440/7/7/22 Clare Mary Joan Spottiswoode CBE v Nexans France S.A.S. & Others.
