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ARTICLE · 04 FEBRUARY 2020

Early-Exit Fees Cause Misery For Virgin Media

Shepherd and Wedderburn
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At the end of 2018 Ofcom fined Virgin Media £7 million for breaching two regulatory obligations, when it overcharged its customers who wanted to leave its contracts early...

United KingdomAntitrust/Competition Law
Ellie Gannon
Ellie Gannon
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CAT dismisses Virgin Media's appeal

At the end of 2018 Ofcom fined Virgin Media £7 million for breaching two regulatory obligations, when it overcharged its customers who wanted to leave its contracts early, under so called 'early-exit charges'. Ofcom's investigation discovered that Virgin Media had overcharged almost 82,000 customers a total of just under £2.8 million. Virgin Media appealed Ofcom's decision against it on three grounds and the case was referred to the Competition Appeal Tribunal (the "CAT"). Earlier this week the CAT dismissed the claim on all grounds. This article will consider in particular, the CAT's judgement in deciding whether the penalty was proportionate in relation to the new judicial review standard of review.

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