United Kingdom: CAT dismisses Motorola’a appeal against the CMA
Jan 06, 2024 | Posted by Abdul-Rahman Oladimeji
The Competition Appeal Tribunal (CAT) has dismissed Motorola’s appeal against the Competition and Markets Authority (CMA). Motorola, in its appeal, had claimed that the CMA made errors in assessing competition in the relevant market and the profitability of the Airwave Network. However, the CMA found that UK emergency services currently have no choice but to continue using Motorola’s Airwave Network, due to a lack of alternative providers.
Martin Coleman, chair of the independent panel of experts conducting this investigation, said, "Our investigation showed that Motorola held all the cards when it came to pricing. With no other providers in the market, our fire, police, and ambulance services had no choice but to pay the rates set by Motorola – meaning they paid almost £200 million a year more than they would have if the market was working well.”
He added, "Our price cap puts a limit on how much Motorola can now charge for the use of its Airwave Network. This ensures lower prices for these key services – and ultimately less cost for taxpayers – while allowing Motorola to invest in the network to ensure that quality and safety are maintained."