British Telecommunications plc () and Telecom Group plc () both appealed to the Competition Appeal Tribunal () following Ofcom's decision on superfast broadband pricing in March last year.

is currently the largest retail provider of fibre broadband services over its network, but is required to allow other operators to use its network to sell superfast broadband to consumers under a process known as 'virtual unbundled local access' ().

The Ofcom pricing rule aims to ensure that maintains a sufficient margin between its wholesale and retail superfast broadband charges, in order to allow other providers profitably to match its prices.

Under the 2003 Communications Act, if decisions by Ofcom are appealed to the and include a price control matter, then this matter must be referred to the Competition and Markets Authority () for determination. Both parties have therefore sought a reference to the of the price control matters in their respective appeals.

The has permitted Sky UK Limited and to be interveners in the appeal brought by , and to be an intervener in the appeal brought by .

The determination will be made by a group of independent panel members supported by a case team of staff. The has 6 months to send its final determination to the . The will then include this determination in its judgment alongside the other issues it has considered as part of the appeals.

Further details on the and appeals are available on the website.

Notes for editors

  1. The is the UK's primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
  2. Ofcom's detailed explanation of its superfast broadband decision is set out in 'Fixed Access Market Reviews: Approach to the margin' '.
  3. The hears appeals against decisions made by the and sectoral regulators such as Ofcom.
  4. Enquiries should be directed to Rory Taylor (rory.taylor@cma.gsi.gov.uk, 020 3738 6798).
  5. For information on the see our homepage, or follow us on Twitter @CMAgovuk, Flickr and LinkedIn. Sign up to our email alerts to receive updates on regulatory references and appeals.

CMA - Competition and Markets Authority issued this content on 2016-01-06 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 2016-01-06 12:15:03 UTC

Original Document: https://www.gov.uk/government/news/cat-refers-superfast-broadband-price-control-appeals-to-cma