Packet Media Ltd v Telefonica UK Ltd

Packet Media Ltd v Telefonica UK Ltd

Interim injunctive relief is granted because PML has raised a seriously arguable case of abuse of dominant position in the call and SMS text origination market, and damages would not be an adequate remedy for PML if SIM cards are disconnected. No serious issue to be tried arises under the RTTE Regulations. The balance of convenience favours maintaining the status quo pending trial.

Parties
Claimant: Packet Media Limited; Defendant: Telefonica UK Limited
Jurisdiction
England and Wales
Judgment Date
20 July 2015
Procedural Posture
Interim Application for Injunction / Ruling on Interim Injunction
Outcome
Interim injunction granted restraining O2 from discontinuing service to disputed SIM cards, subject to O2's right to apply to discharge and fortified cross-undertaking in damages.
Legal Topics
Abuse of Dominant Position, Interim Injunctions, Regulation of Telecommunications Equipment, Market Definition, Adequacy of Damages
Competition Law Telecommunications Law Abuse of Dominant Position Interim Injunctions Regulation of Telecommunications Equipment Market Definition Adequacy of Damages

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Parties

Packet Media Limited

Claimant

Telefonica UK Limited

Defendant

Procedural Posture

Interim Application for Injunction / Ruling on Interim Injunction

Legal Issues

  1. 1 Whether O2's threatened disconnection of SIM cards constitutes abuse of dominant position under Competition Act 1998
  2. 2 Whether O2's actions breach Regulation 7 of the RTTE Regulations
  3. 3 Whether interim injunctive relief should be granted to restrain O2 from disconnecting SIM cards

Ratio Decidendi

Interim injunctive relief is granted because PML has raised a seriously arguable case of abuse of dominant position in the call and SMS text origination market, and damages would not be an adequate remedy for PML if SIM cards are disconnected. No serious issue to be tried arises under the RTTE Regulations. The balance of convenience favours maintaining the status quo pending trial.

Court Disposition

Interim injunction granted restraining O2 from discontinuing service to disputed SIM cards, subject to O2's right to apply to discharge and fortified cross-undertaking in damages.

Orders

  • O2 restrained from suspending or discontinuing service to SIM cards identified in letter of 5th June 2015 pending trial.
  • PML's cross-undertaking in damages to be fortified by personal undertaking from Mr. Gallimore.