Motorola rings in collective action

Motorola is facing a proposed £650 million collective action in the U.K., accused of charging excessive prices for its Airwave secure radio network, relied upon by emergency services. The claim alleges that Motorola abused its market dominance, breaching competition law.

What’s Going On?
The claim, filed with the Competition Appeal Tribunal, is led by Clare Spottiswoode, the former head of an energy regulator, and funded by the Home Secretary. It targets Motorola’s pricing of the Airwave network, which is essential for police, fire, ambulance, and other emergency services. Between 2020 and 2023, emergency services reportedly paid inflated fees due to Motorola’s market conduct.

This case builds on findings from the Competition and Markets Authority (CMA), which determined that Motorola overcharged for Airwave services. Although Motorola has challenged the CMA's findings, the tribunal upheld them in 2023, and the company awaits the Court of Appeal’s ruling.

Motorola acquired Airwave in 2016, but the network is set to be replaced by the Home Office’s Emergency Services Network (ESN)—a transition delayed until 2029. The claim aims to secure compensation for up to 2,000 class members impacted by the alleged overpricing.

Key Points to Discuss:

1. Market Dominance and Abuse:
   Motorola is accused of leveraging its dominant position in the secure communications market to impose unfair pricing on critical public safety services. This raises questions about the regulation of monopolistic markets serving public needs.
2. Building on CMA Findings:
   The claim’s strength is bolstered by the CMA’s earlier investigation, which found Motorola’s pricing to be excessive. However, the outcome may hinge on the Court of Appeal’s pending decision on Motorola’s challenge to the CMA ruling.
3. Impact on Public Services:
   Emergency services rely on Airwave to ensure secure communication. Allegations of overcharging directly affect taxpayer-funded organizations, emphasizing the importance of fair competition in markets tied to public safety.

Who is Advising on This?

• Claimant (Clare Spottiswoode): Represented by Ashurst.