BT defends £1.3bn class action lawsuit

BT has successfully defended itself against a £1.3bn class action lawsuit following concerns about its pricing.

The case alleged that the telecoms giant had "disproportionately overcharged" its landline customers.

On Thursday (19 December), the Competition Appeal Tribunal (CAT) delivered a judgment saying that BT's pricing was not unfair.

Why did BT face a lawsuit?

Telecommunications regulator Ofcom had already raised concerns about BT’s pricing back in 2017, claiming that millions had been overcharged since 2015.

Many of those affected were pensioners or from low-income households.

BT agreed to reduce landline prices.

Despite this, Collective Action on Land Lines (CALL) decided to seek compensation of £300 to £400 for over three million vulnerable BT customers.

This amount would depend on the length of their contracts.

What does the decision mean?

Because BT came out on top, they don’t have to pay any compensation to their customers.

A spokesperson for BT said that the tribunal's ruling confirmed their conduct did not breach competition law.

They added: “We take our responsibilities to all of our customers very seriously and welcome today’s ruling.”

What does CALL say?

Justin Le Patourel, of CALL, said that although he was pleased the tribunal recognised BT in dominating the market, he was “disappointed that it didn’t agree prices were unfair”.

He added: “We are carefully considering the tribunal’s decision and whether the next step will be an appeal to the court of appeal to challenge this verdict."

What next?

For now, it seems BT has weathered this storm, but the conversation around fair pricing continues.

Check out these tips if you think you’re overpaying for your phone and broadband services.