British Telecommunications Plc v The Office of Communications

British Telecommunications Plc v The Office of Communications

The Court of Appeal held that Article 8(1) of the Universal Service Directive does not permit Member States to impose wholesale obligations such as USC 7 on designated undertakings unless those undertakings are required to provide universal service directly to end-users. USC 7, which obliges BT to supply the OSIS database to third parties at regulated prices, is not valid under EU law or domestic law unless justified by Article 5 of the Directive. The court found the issue not acte clair and referred the interpretation of Article 8(1) to the ECJ for a preliminary ruling.

Parties
Appellant/intervener: British Telecommunications Plc; Appellant: The Office of Communications (OFCOM); Respondent/appellant: The Number (UK) Limited; Respondent/appellant: Conduit Enterprises Limited
Jurisdiction
England and Wales
Judgment Date
15 December 2009
Procedural Posture
Appeal / Court of Appeal, Civil Division; Referral to ECJ Pending
Outcome
Appeal not determined; preliminary reference to ECJ for interpretation of Article 8(1) Universal Service Directive.
Legal Topics
Universal Service Obligations, Regulatory Powers, Competition Regulation, Directory Enquiry Services, Implementation of EU Directives
Telecommunications Law European Union Law Administrative Law Universal Service Obligations Regulatory Powers Competition Regulation Directory Enquiry Services Implementation of EU Directives

Case Brief

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Parties

British Telecommunications Plc

Appellant/intervener

The Office of Communications (OFCOM)

Appellant

The Number (UK) Limited

Respondent/appellant

Conduit Enterprises Limited

Respondent/appellant

Procedural Posture

Appeal / Court of Appeal, Civil Division; Referral to ECJ Pending

Legal Issues

  1. 1 Whether Universal Service Condition 7 (USC 7) imposed on BT is valid under EU law and domestic law
  2. 2 Scope of obligations that can be imposed on designated universal service providers under Article 8(1) of the Universal Service Directive
  3. 3 Compatibility of USC 7 with the Communications Act 2003 and relevant EU Directives

Ratio Decidendi

The Court of Appeal held that Article 8(1) of the Universal Service Directive does not permit Member States to impose wholesale obligations such as USC 7 on designated undertakings unless those undertakings are required to provide universal service directly to end-users. USC 7, which obliges BT to supply the OSIS database to third parties at regulated prices, is not valid under EU law or domestic law unless justified by Article 5 of the Directive. The court found the issue not acte clair and referred the interpretation of Article 8(1) to the ECJ for a preliminary ruling.

Court Disposition

Appeal not determined; preliminary reference to ECJ for interpretation of Article 8(1) Universal Service Directive.

Orders

  • Matter referred to the European Court of Justice for preliminary ruling on the scope of Article 8(1) Universal Service Directive.
  • No final determination pending ECJ ruling.