The Court of Appeal has refused Motorola permission to appeal the CMA's findings that it was making supernormal profits from providing communications network services to the UK emergency services.
Today the Court of Appeal (CoA) has unanimously dismissed Motorola's application for permission to appeal on both of its pleaded grounds, in which it claimed that the Competition and Markets Authority (CMA) had made errors in assessing competition in the relevant market and the profitability of the Airwave Network in 2021.
In its original findings, the CMA said that Motorola was able to make supernormal profits because it has a virtually unconstrained monopoly in the market to supply communications network services to the UK's emergency services. The CMA imposed a charge control order capping the price Motorola could charge.
Motorola challenged the CMA's original findings in the Competition Appeal Tribunal (CAT). The CAT unanimously dismissed that challenge and Motorola sought permission to appeal to the CoA. In a judgment handed down today, the Court endorsed the CMA's reasoning as set out in its original findings .
The CMA's price cap ensures that the UK's emergency services pay a fair price for Airwave's services, reducing the price by almost £200 million per year.
Today's decision by the CoA brings this case to a close, as Motorola cannot appeal the decision further.
George Lusty, Executive Director of Consumer Protection and Markets, at the CMA, said:
The CMA's investigations and legal decisions are carefully considered and evidence-led and we welcome today's decision by the Court of Appeal which endorses our reasoning in this case.
Our investigation showed that Motorola had been charging emergency services in the UK £200 million a year more than they would if the market was working well. The Court's judgment today means that our price cap remains in place, which limits how much Motorola can charge emergency services for using its Airwave Network.
Today's decision brings this matter to a close.
