BT Press Releases

DC10-158                                                                                                  July 8, 2010

BT and TalkTalk in legal challenge to Digital Economy Act

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BT and TalkTalk today revealed they have filed papers with the High Court asking for a judicial review with regards to the Digital Economy Act.

The two companies believe that  provisions  in the Act,  aimed at the prevention of online copyright infringement, received insufficient scrutiny before being rushed through into law at the tail end of the last Parliament.  That view is shared by many MPs of all parties, who also have concerns about the legislative process that was followed and the lack of a normal parliamentary timetable.

As well as having procedural concerns, BT and TalkTalk believe the measures proposed to try to prevent online copyright infringement could harm citizens as well as impact both businesses.  As a result, they are seeking clarity from the Court before they and others are asked to implement the Act.

In particular, the companies share a concern that obligations imposed by the Act may not be compatible with important European rules that are designed to ensure that national laws are proportionate, protect users’ privacy, restrict the role of ISPs in policing the Internet and maintain a single market.  If clarity is not gained at this stage then BT, TalkTalk and other industry players may end up investing tens of millions of pounds in new systems and processes only to find later that the Act is unenforceable and the money wasted.

Gavin Patterson, CEO, BT Retail, said: “It’s disappointing that we feel the need to take action but we feel we have no choice. We have to do this for our customers who otherwise run the risk of being  treated unfairly.

“Our dispute is not with the current Government but with the way the previous administration pushed this through without due process. We need clarity about whether this legislation is compatible with important EU laws.”

Charles Dunstone, Chairman, TalkTalk Group, said: “The Digital Economy Act's measures will cost the UK hundreds of millions and many people believe they are unfair, unwarranted and won't work.  So it’s no surprise that in Nick Clegg’s call for laws to repeal, this Act is top of the public’s ‘wish list’.  Innocent broadband customers will suffer and citizens will have their privacy invaded. We think the previous Government's rushed approach resulted in flawed legislation. That’s why we need a judicial review by the High Court as quickly as possible before lots of money is spent on implementation.”