Millions of UK mobile customers have moved a step closer to potential compensation after the Competition Appeal Tribunal (CAT) confirmed that a major collective legal action against EE, O2, Vodafone and Three can go ahead.
The case centres on allegations that the UK’s four biggest mobile operators overcharged customers by continuing to bill them the bundled price of their contract – including the cost of the handset – even after their minimum term ended. This practice has become widely known as the “loyalty penalty”.
While the networks deny any wrongdoing, the Tribunal has now ruled that the claim can proceed. This is a significant milestone for consumers.
What has the Tribunal decided?
In late 2025, the Competition Appeal Tribunal ruled that:
- The collective action can proceed to the next stage.
- Claims for the period before 1 October 2015 are excluded due to limitation rules.
- Attempts by some operators to reduce the scope further – by excluding claims before 8 March 2017 – were rejected.
- Justin Gutmann, a consumer advocate, has been formally approved as the class representative, meaning he can continue to bring the case on behalf of affected consumers.
This means the core allegation will now be examined in detail: did the networks keep charging customers the full bundled price even after the handset had been fully paid off?
What the claim alleges
For years, millions of customers took out combined handset-and-airtime contracts. These typically run for 24 months, during which the cost of the phone is gradually repaid.
The claim argues that once the minimum term expired and the handset was fully paid off, customers should have been moved to a cheaper SIM-only plan. Instead, many people continued to be charged the same monthly price, resulting in significant overpayments.
According to the claim filings, potential compensation per contract could exceed:
- £1,101 for EE customers
- £1,178 for O2 customers
- £1,817 for Three customers
- £1,823 for Vodafone customers
The total estimate across all networks is more than £3 billion.
All four operators strongly deny the allegations.
Why this matters for consumers
The Tribunal’s decision does not mean compensation is guaranteed. But it does mean the case will be fully considered – and that millions of customers could benefit if the claim succeeds.
If you stayed on a bundled contract after the minimum term ended, you may have been paying more than necessary without realising it.
You may be part of the claim if you:
- Had a combined handset-and-airtime contract with EE, O2, Vodafone or Three
- Stayed on the same monthly price after the minimum term ended
- Were billed for a handset longer than necessary
- Held the contract at any time after 1 October 2015.
If you were with any of these networks during that period, it’s worth keeping an eye on developments.
Collective actions take time, and no compensation can be paid until the Tribunal has completed several stages of review. However, if the case succeeds or settles, customers may be due compensation, so you should register your details on the official claim website to ensure you receive updates, and your share of any compensation once the claim opens.
We’ll continue following this claim closely and will share updates as soon as new information becomes available.
Join the Claim connects consumers with SRA-regulated lawyers. Visit the claim page to check your eligibility if a claim is open with one of our trusted legal partners. If a group action has not yet been launched, you can register your interest and we’ll keep you informed if a partner firm decides to take a claim forward.
