Motorola Solutions Loses Appeal Against Price Cap for Emergency Services Radio Communications Network

Motorola Solutions has lost its appeal against the competition watchdog’s decision to cap the price it can charge for the radio network used by all of the UK’s emergency services. The Competition and Markets Authority (CMA) previously said emergency services had no option but to use Motorola’s Airwave Network so the business can charge “prices well above competitive levels”.

The CMA said the decision to cap prices will reduce the current price by almost £200 million per year.
After calling what the CMA called a “fair return” an “unprecedented overreach (which) will have a chilling effect on long-term investment”, Motorola appealed against the decision.

On Friday the Competition Appeal Tribunal, chaired by Bridget Lucas KC, ruled that their challenge was “fundamentally flawed” and that CMA’s approach was “not irrational or inconsistent”.

Motorola Solutions described the ruling as “highly concerning” adding: “In our decades of operating nationwide public safety networks around the world, we have not seen anything like this.”
 
The CMA said it will limit the amount Motorola Solutions can charge “to a level that would apply in a well-functioning competitive market”.

The cap will run until 2029, although there will be a review in three years.