The communications regulator. ComReg, is seeking High Court orders requiring Sky Ireland Ltd to end its practice of automatically renewing customers’ contracts without first informing them their contracts are about to end and of alternative tariffs.
ComReg claims Sky is in breach of 2022 European Union regulations requiring communications service providers to inform consumers in a prominent and timely manner of the end of the contractual commitment and means by which to terminate the contract.
It says Sky is also contravening the regulations by failing to provide consumers with “best tariff advice” before the contract is automatically prolonged. Sky is the only one of the five big providers refusing to do so, ComReg says.
Sky disputes ComReg’s interpretation of the relevant legal provisions and says they only apply to contracts with a fixed duration. Its customers’ contracts are subscription contracts of indeterminate duration, it says.
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The regulations, Sky argues, are designed to address the potential harm of consumers getting automatically prolonged in the contract for a second term without their knowledge. This harm does not arise in relation to Sky customers as its contracts do not follow this type of model in Ireland, it argues.
It also says the ultimate interpretation of the regulations is for the courts to decide.
On Monday, Mr Justice Mark Sanfey admitted Comreg’s proceedings against Sky to the fast track Commercial Court on the application of Eoin McCullough SC, for the regulator, and on consent from Andrew Fitzpatrick SC, for Sky. The case was adjourned to December.
In an affidavit seeking entry of the case to the commercial list, Miriam Kilraine, ComReg compliance operations manager, said the purpose of end of contract information and best tariff advice, when a contract is nearing end and about to be “auto-prolonged”, is that customers are afforded an opportunity of making an informed decision to stay with their current provider on the same or different package or to switch to a new provider.
This is important particularly as customers may be losing discounts and therefore incurring higher prices and, in the case of Sky customers, this could include bundled TV, broadband and telephone services, she said.
As part of its review and enforcement functions, ComReg began an investigation last September and Virgin Media, Eircom, Three and Vodafone all confirmed they are in compliance but Sky said it did not do so. Further investigations into Sky followed and in December Sky said it would not be complying because of its interpretation of the regulations.
Ms Kilraine said it is clear there is a fundamental disagreement between the parties regarding the interpretation of the relevant legal provisions in this case. It is ComReg’s position that Sky has failed and continues to fail to comply with its obligations under the 2022 regulations, she said.
She also said Sky’s UK arm, Sky UK Ltd, has taken a different position to its Irish counterpart and provides best tariff information to its customers. Th followed enforcement action against Sky UK by the UK watchdog, Ofcom, in 2021 which concluded in Ofcom’s favour last December, Ms Kilraine said.
