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Phones4U collusion allegation appeal hearing starts today – live streamed
The appeal hearing brought by Phones 4U (in administration) is now underway at the Royal Courts of Justice.
The proceedings are scheduled to last four days and are being live-streamed HERE, having been selected due to the case’s high profile and legal significance.
The appeal arises from a claim brought by the administrators of Phones 4U, who alleged that the company’s financial collapse was caused by unlawful conduct on the part of the defendants.
Phones4U accused the networks of breaching the Treaty on the Functioning of the European Union and the Competition Act 1998.
Central to the appeal are fundamental questions about how covert sharing of sensitive business information between competitors may constitute an infringement of competition law and how the causal consequences of such infringements should be analysed.
A key part of Phones4U’s appeal is alleged collusion between EE head Olaf Swantee and O2 head Ronan Dunne during a lunch they had at the Landmarkk Hotel which Swantee recorded.
Phones 4U is currently facing £77.2 million in costs claimed by the mobile networks it originally sued, on top of its own legal expenses of around £29 million. This follows its defeat after a four-month trial in which the Phones4U administrators alleged that all major UK mobile networks colluded to force it into bankruptcy.
The claims were comprehensively rejected in a 750-page judgment that took over a year to prepare. Mr Justice Roth dismissed all allegations of anti-competitive behaviour, as well as a separate breach of contract claim against EE.
As a result, Phones 4U’s legal action against EE, Telefónica, Deutsche Telekom, Vodafone, and Orange was entirely dismissed. The administrators of Phones 4U are now weighing whether to appeal the ruling.
Had the networks lost, industry analysts estimated potential damages could have reached nearly £1 billion—a figure that underscores the scale and stakes of the dispute.
Claim of collusion
Phones 4U’s downfall began in 2014 when key mobile networks began terminating or refusing to renew their supply contracts. Vodafone and EE both pulled out, following earlier withdrawals by O2 and Three, leaving Phones 4U without access to any mobile network products to sell.
The retailer entered administration in September 2014, triggering widespread store closures and significant job losses. The decision by multiple networks to exit their agreements with Phones 4U in quick succession formed the basis of the company’s legal claim of collusion and anti-competitive behaviour.
Industry Impact
The outcome of this case—and its appeal—has far-reaching implications for the mobile industry.
While the initial ruling found no unlawful coordination, the case has highlighted the fragility of independent retail models that rely on network partnerships. It may prompt closer scrutiny of how networks manage their retail relationships and supply agreements, especially in a market increasingly shifting towards direct-to-consumer strategies.
Retailers may also seek greater contractual protections in future partnerships to mitigate the risk of sudden supply withdrawals, while networks could face calls for more transparent and auditable decision-making when changing channel strategies.