Virgin Media Protests 'Excessive' UK Fine for Overcharging -- Update
November 16 2018 - 5:07AM
Dow Jones News
(Updates with Virgin Media, EE responses.)
By Adam Clark
Virgin Media said Friday that it will appeal a fine levied by
U.K. telecommunications regulator Ofcom for overcharging customers
who ended their contracts early.
Ofcom fined Liberty Global PLC's (LBTYA) Virgin Media 7.0
million pounds ($8.1 million) over excessive charges for customers
who ended contracts early. The regulator said that almost 82,000
customers were affected and overpaid a total of just under GBP2.8
million.
Virgin Media accepted that it overcharged 1.5% of its cable
customers between September 2016 and August 2017. However, it
defended its use of early-exit charges and said it rejected Ofcom's
claim that they dissuaded customers from switching provider.
"This unreasonable decision and excessive fine does not reflect
the swift actions we took, the strong evidence we have presented,
or our consistent, open and transparent cooperation with the
regulator. We will be appealing Ofcom's decision," VM Chief
Executive Tom Mockridge said.
Ofcom also fined BT Group PLC's (BT.A.LN) EE GBP6.3 million for
overcharging customers on discounted deals who ended their
contracts early. The regulator said that over a six-year period,
400,000 customers overpaid up to GBP4.3 million in early-exit
charges.
EE said it accepted Ofcom's findings and has already refunded
customers and changed the way it calculates early-exit charges.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
November 16, 2018 04:52 ET (09:52 GMT)
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