Six Nations boss ‘tried to break competition law’ before Phones 4U collapse
James Warrington
Fri, 10 November 2023
Ronan Dunne was chief executive of O2 between 2008 and 2016
- David Rose
The chairman of Six Nations Rugby attempted to break competition law when he ran the O2 mobile network, the High Court has found.
Ronan Dunne, who was chief executive of O2 between 2008 and 2016, sought to engage in collusion by discussing pricing strategies with a rival, a judgement handed down on Friday said.
He was criticised by Mr Justice Roth as having a “rather cavalier attitude to competition law compliance” after attempting to discuss strategy and pricing with rivals in meetings and phone calls.
The comments followed a £1bn claim against O2, EE, Vodafone, Telefonica, Deutsche Telekom and Orange.
Administrators for the collapsed retailer Phones 4U alleged that the mobile operators colluded to force it out of business in 2014.
Despite finding that Mr Dunne had attempted to collude, the High Court rejected all claims of breach of competition law, as well as a separate claim against EE for breach of contract.
Phones 4U’s administrators are understood to be considering an appeal.
High street retailer Phones 4U fell into administration in 2014 - Ian West/PA
A spokesman for O2 said: “From the outset, we have strongly refuted all allegations of collusion or anti-competitive conduct in relation to the decision to let our agreements with Phones 4U expire.
“We are pleased that the court supports our position and has ruled in our favour.”
Representatives for Mr Dunne were contacted for comment.
The findings against him focused on a lunch meeting with Olaf Swantee, then chief executive of EE, at the Landmark Hotel in central London in September 2012.
Mr Swantee told the court that he had been so alarmed by Mr Dunne’s approach that he secretly recorded the meeting on his iPad, although it had later been lost.
The findings against Mr Dunne focused on a lunch meeting with Olaf Swantee,
The chairman of Six Nations Rugby attempted to break competition law when he ran the O2 mobile network, the High Court has found.
Ronan Dunne, who was chief executive of O2 between 2008 and 2016, sought to engage in collusion by discussing pricing strategies with a rival, a judgement handed down on Friday said.
He was criticised by Mr Justice Roth as having a “rather cavalier attitude to competition law compliance” after attempting to discuss strategy and pricing with rivals in meetings and phone calls.
The comments followed a £1bn claim against O2, EE, Vodafone, Telefonica, Deutsche Telekom and Orange.
Administrators for the collapsed retailer Phones 4U alleged that the mobile operators colluded to force it out of business in 2014.
Despite finding that Mr Dunne had attempted to collude, the High Court rejected all claims of breach of competition law, as well as a separate claim against EE for breach of contract.
Phones 4U’s administrators are understood to be considering an appeal.
High street retailer Phones 4U fell into administration in 2014 - Ian West/PA
A spokesman for O2 said: “From the outset, we have strongly refuted all allegations of collusion or anti-competitive conduct in relation to the decision to let our agreements with Phones 4U expire.
“We are pleased that the court supports our position and has ruled in our favour.”
Representatives for Mr Dunne were contacted for comment.
The findings against him focused on a lunch meeting with Olaf Swantee, then chief executive of EE, at the Landmark Hotel in central London in September 2012.
Mr Swantee told the court that he had been so alarmed by Mr Dunne’s approach that he secretly recorded the meeting on his iPad, although it had later been lost.
The findings against Mr Dunne focused on a lunch meeting with Olaf Swantee,
then chief executive of EE - Jamie Lorriman
A note made by EE’s legal team shortly after the lunch documented that the O2 boss had suggested that price discounts could be offset by reducing supply through third-party retailers such as Phones 4U.
Mr Dunne talked about making some “unilateral steps” and playing some “big cards”, according to the note.
The judge concluded that Mr Swantee had resisted the attempts at collusion and that there was therefore no breach of competition law.
The judge also branded EE “deplorable” for giving regulator Ofcom an incorrect timeline of its plan to end its contract with Phones 4U, though he added: “It is unclear whether the misleading impression given to Ofcom was deliberate or just grossly negligent.”
A spokesman for EE said: “We’re pleased that the court has dismissed all the allegations made in the Phones 4U administrators’ case. Our code of business sets out how we compete to win fairly and connect for good.
“The judgement clearly demonstrates that EE’s decision to exit Phones 4U was taken independently, and based on sound business reasoning.”
A note made by EE’s legal team shortly after the lunch documented that the O2 boss had suggested that price discounts could be offset by reducing supply through third-party retailers such as Phones 4U.
Mr Dunne talked about making some “unilateral steps” and playing some “big cards”, according to the note.
The judge concluded that Mr Swantee had resisted the attempts at collusion and that there was therefore no breach of competition law.
The judge also branded EE “deplorable” for giving regulator Ofcom an incorrect timeline of its plan to end its contract with Phones 4U, though he added: “It is unclear whether the misleading impression given to Ofcom was deliberate or just grossly negligent.”
A spokesman for EE said: “We’re pleased that the court has dismissed all the allegations made in the Phones 4U administrators’ case. Our code of business sets out how we compete to win fairly and connect for good.
“The judgement clearly demonstrates that EE’s decision to exit Phones 4U was taken independently, and based on sound business reasoning.”
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