Motorola Loses Final Appeal Over UK Emergency Network Price Cap

Motorola has reached the end of the legal road in its attempt to overturn a ruling by the UK’s Competition and Markets Authority (CMA), which imposed a price cap on its Airwave network for emergency services. According to The Register, the Court of Appeal (CoA) has unanimously rejected Motorola’s latest effort to challenge the CMA’s decision, leaving no further avenues for appeal.

The CMA initially proposed the price cap in October 2022, recognizing that Motorola held a dominant position by operating Airwave, the existing communications network for emergency services in England, Scotland and Wales. The Airwave system, which is used by 108 police, fire and ambulance services, was originally set to be replaced by the Emergency Services Network (ESN). However, as The Register notes, delays in the ESN rollout prolonged Motorola’s control over Airwave, leading to concerns about excessive pricing.

Motorola’s latest appeal argued that the CMA had erred in its assessment of competition and profitability in the emergency communications market. However, the CoA dismissed the case, upholding the CMA’s decision. This follows an earlier rejection by the UK’s Competition Appeal Tribunal (CAT) in early 2024, which dismissed Motorola’s challenge on similar grounds.

With the CoA’s ruling, Motorola has exhausted its legal options. Per The Register, the CMA has emphasized that the price cap ensures a fairer deal for UK emergency services, reducing costs by nearly £200 million ($248 million) per year. George Lusty, Executive Director of Consumer Protection and Markets at the CMA, welcomed the ruling, reaffirming the authority’s findings.

Related: Motorola Accuses UK of Antitrust Breach Over Terminated Emergency Services Contract

“The CMA’s investigations and legal decisions are carefully considered and evidence-led and we welcome today’s decision by the Court of Appeal which endorses our reasoning in this case,” Lusty stated.

The dispute dates back to 2015 when Motorola was awarded the contract to deliver the ESN, a 4G-based replacement for the aging Airwave system. Shortly after, in 2016, the company acquired Airwave Solutions, effectively giving it control over both the current system and its planned successor. At the time, the CMA approved the merger, as the Airwave system was expected to be decommissioned by 2019. However, delays in the ESN rollout led to an extension of Airwave’s contract in 2020 for an additional six years.

According to The Register, the CMA launched an investigation in 2021 over concerns that Motorola was exploiting these delays to maximize profits. The authority determined that the company was charging emergency services significantly above market rates, estimating that it stood to gain £1.2 billion ($1.49 billion) in profits during the extension period.

Source: The Register