Court of Appeal Upholds Ruling Against Phones 4U‘s Collusion Claims
Table of Contents
July 14, 2025
The Court of Appeal has definitively rejected an appeal lodged by the administrators of Phones 4U. The appeal challenged a previous judgment by Mr. justice Roth, which had dismissed Phones 4U’s allegations that multiple mobile network operators and their parent companies had colluded or engaged in wrongful conduct leading to the company’s collapse in 2014.
Phones 4U had argued that Mr. Justice Roth made legal errors, including misapplying the ‘Anic presumption’ and incorrectly finding no concerted practice between O2 and EE. They also contended that the judge improperly rejected parts of their claim based on his own factual theories,failed to consider all evidence adequately,and wrongly omitted to draw adverse inferences from a defendant’s inadequate document preservation measures. All these grounds of appeal were unsuccessful.
Lady Justice Falk’s judgment offers meaningful insights into the definition of a “concerted practice” under Article 101(1) of the Treaty on the Functioning of the European Union and Section 2 of the Competition Act 1998. The ruling also clarifies the nature and impact of the ‘Anic presumption’ and its connection to domestic causation law. Furthermore, the judgment provides a thorough examination of principles applicable to factual challenges against delayed judgments, emphasizing the risks of appellate courts engaging in “island hopping” when reviewing such cases. This comprehensive decision is expected to be of considerable interest to legal practitioners, particularly those specializing in competition law.
The full judgment from the Court of appeal is accessible here.
Evergreen Insights
The Phones 4U case highlights the complexities of proving collusion in competition law.The ‘Anic presumption’ is a key legal tool that can shift the burden of proof in cases of alleged concerted practices. though, as this judgment demonstrates, overcoming this presumption requires substantial evidence of coordination between competitors. The ruling also underscores the importance of thorough evidence preservation and the challenges faced by appellants when arguing that a judgment is unsafe due to delays in its delivery.
Frequently Asked questions
- What was the primary claim made by Phones 4U?
- Phones 4U claimed that mobile network operators colluded to cause its downfall.
- Did the Court of Appeal find evidence of collusion by mobile network operators?
- No, the Court of Appeal rejected Phones 4U’s appeal, upholding the lower court’s finding that there was no evidence of collusion.
- What is the ‘Anic presumption’ mentioned in the ruling?
- The ‘Anic presumption’ is a legal principle that can infer a concerted practice from evidence of coordination between competitors.
- What were the main grounds of phones 4U’s appeal?
- Phones 4U appealed on grounds including errors in law regarding concerted practice, improper rejection of evidence, and failure to consider evidence adequately.
- what is the significance of the Court of Appeal’s judgment for competition law?
- The judgment provides crucial observations on the scope of concerted practices and the submission of the ‘anic presumption’.
- What does the ruling imply about document preservation in legal cases?
- The judgment reiterates the dangers of inadequate document preservation measures and the potential for adverse inferences to be drawn.