Britain’s largest mobile network operators including Vodafone, BT’s EE, O2 and Three UK are now at the center of a major legal battle after a London tribunal allowed part of a multi billion pound lawsuit to proceed. The case accuses the mobile operators of overcharging customers by continuing to bill them for mobile devices even after the handsets had been fully paid off.
The lawsuit, led by British consumer advocate Justin Gutmann, initially sought more than 3.2 billion pounds in damages. Gutmann’s legal team alleges that millions of UK customers who stayed with their provider after the end of their minimum contract were unfairly charged what they call a loyalty penalty. According to the claim, customers continued paying monthly fees that included handset costs despite owning the devices outright.
Tribunal Allows Case to Proceed for Post 2015 Claims
In its Friday ruling, the Competition Appeal Tribunal (CAT) dismissed claims relating to losses before October 2015, ruling that these aspects were filed too late. However, the tribunal certified that claims for losses incurred after that date can move forward to trial. This keeps the core of the lawsuit alive and sets the stage for a high profile legal challenge involving the UK’s biggest telecom operators, Reuters news report said.
Network Operators Dismiss Allegations
The mobile operators have pushed back strongly against the accusations.
EE said it does not accept the substance of the claims and will defend its position. O2 welcomed the narrowing of the lawsuit’s scope and stated that it sees no merit in the remaining allegations. Vodafone and Three UK, which had a 19 billion dollar merger approved last year, did not immediately comment on the ruling.
Lawyers representing the operators argue that the lawsuit is misguided, claiming it accuses companies of anti competitive practices in a market known for intense competition and frequent customer switching.
In FY2025, BT Group reported revenue of £20.4 billion, a slight decline of 2 percent from the previous year, though Adjusted EBITDA increased by 1 percent, supported by cost transformation and continued investment in fibre and 5G networks.
Vodafone UK recorded revenue of approximately £5.9 billion, up from €6.837 billion the prior year, driven by strong organic service revenue growth of 5 percent, aided by annual price increases and positive commercial momentum across consumer and business segments.
Virgin Media O2’s estimated full-year revenue was £8.3 billion, down from £10.3 billion in FY2024, impacted by mobile hardware challenges and ongoing merger integration, but core revenues and Adjusted EBITDA showed growth in the first half of FY2025.
What Comes Next
With part of the lawsuit cleared to proceed, the case will now move toward trial, where the tribunal will examine whether customers were indeed charged for devices they had already paid off. The outcome could have significant implications for customer billing practices across the UK telecom sector.
Baburajan Kizhakedath
