BT Group PLC (LSE:BT.A) got an early Christmas present as a Competition Tribunal threw out a £1.3 billion class action that alleged it had overcharged landline customers.
Justin Le Patourel, the founder of Collective Action on Land Lines (Call), wanted £300 and £400 in compensation for more than three million customers from the claim.
Le Patourel’s action followed a judgment from 2017 by watchdog Ofcom said that BT had unfairly charged millions of landline customers.
BT subsequently cut its landline prices but Le Patourel argued that the telco also needed to compensate customers.
A spokesman for the telecoms group said: “Today the Competition Appeal Tribunal handed down its judgment in the case of Justin Le Patourel v BT Group in which the CAT has dismissed the claim and found that BT Group’s conduct did not breach competition law.
“We take our responsibilities to all of our customers very seriously and welcome today’s ruling.”
Mr Le Patourel said: “While I am pleased that the Tribunal has recognised BT’s dominant position in the market and the significant and persistent nature of its excessive pricing, I am disappointed that it did not agree that these prices were unfair.
“This means we cannot now compensate many of BT’s most loyal but mistreated landline customers for the overcharging that took place.
“However, 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.”
Shares in BT fell 0.75% to 146p.