UK antitrust tribunal upholds CMA's decision on Motorola's airwave network pricing

Britain's Competition Appeal Tribunal has affirmed the findings of the antitrust watchdog, the Competition and Markets Authority (CMA), regarding US-based walkie-talkie manufacturer Motorola Solutions. The CMA had accused Motorola of overcharging UK emergency services for its radio network, Airwave. The tribunal rejected Motorola's appeal, which contested the regulator's assessment of Airwave Network's profitability and its competition in the relevant market.

Motorola Solutions acquired Airwave in 2016, which serves as the private mobile radio communications network for the police, fire, ambulance, and other emergency services. The CMA contended that Motorola was overcharging these essential services.

The ruling from the tribunal supports the CMA's order, which aims to ensure that the UK's emergency services pay a fair price for Airwave services. The regulator's statement highlighted that the CMA's order would result in a reduction of the current price by almost £200 million ($254.52 million) per year.

The decision comes at a critical time when emergency services are reliant on Airwave, and the anticipated switchover to a new Emergency Services Network (ESN) is not expected until at least 2026, and possibly as late as 2029.

In July, the CMA had already imposed a cap on the pricing, bringing it down to a level deemed appropriate for a well-functioning and competitive market. The upheld decision now solidifies the CMA's efforts to ensure fair pricing for critical communication services utilized by emergency services in the UK.

(With Reuters inputs.)