30.01.2025 | UK competition authority
The UK Court of Appeal (CoA) has unanimously rejected Motorola's request to appeal a previous ruling by the Competition and Markets Authority (CMA) regarding its pricing practices for the Airwave Network, which provides communication services to emergency services in the UK.
The CMA had determined that Motorola was operating as a monopoly in this market, allowing it to charge excessive prices, resulting in supernormal profits. To address this issue, the CMA imposed a charge control order in July 2023, capping the prices Motorola could charge, which is expected to save emergency services nearly £200 million annually.
Motorola contested the CMA's findings in the Competition Appeal Tribunal (CAT), but the tribunal upheld the CMA's conclusions. Following this, Motorola sought permission to appeal to the CoA, which has now been denied, effectively concluding the case.
George Lusty, Executive Director at the CMA, emphasized that the authority's investigations are thorough and evidence-based, and he welcomed the CoA's decision as a validation of the CMA's approach. The CMA's investigation revealed that Motorola's pricing was significantly above what would be expected in a competitive market, leading to inflated costs for emergency services funded by taxpayers.
The CMA's price cap not only protects taxpayers but also allows Motorola to continue investing in the Airwave Network, ensuring the quality and safety of services provided to emergency responders.
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