ECJ ruling against Vodafone: No automatic price increases without an EU basis

The telecommunications provider Vodafone has suffered a setback in the dispute over a clause in its general terms and conditions before the Court of Justice of the European Union (ECJ).

According to EU rules, providers do not have an automatic right to unilaterally change their contractual terms, the judges in Luxembourg made it clear.

The decision is also relevant to an ongoing class action lawsuit against Vodafone, involving more than 100,000 people.

They are defending themselves against Vodafone's price increase for landline internet in 2023.

The background to the proceedings before the ECJ is a lawsuit brought by the Federal Association of Consumer Organizations (vzbv) against the internet provider.

The association criticizes Vodafone's general terms and conditions clause, which allows the company to unilaterally change contractual conditions.

According to the association, this would put consumers at an unreasonable disadvantage.

The internet provider argues, however, that such a right is contained in the German Telecommunications Act.

Because the rules in the Telecommunications Act are based on an EU directive, the Düsseldorf Higher Regional Court, which was involved in the case, turned to the ECJ.

This has now decided that the requirements in the directive only regulate the special right of termination of customers after a contract change.

However, they did not establish a legal basis for unilateral changes, according to the ruling.

It's about protecting the end users, not the providers.

“The European Court of Justice has made it clear: Telecom providers are not allowed to easily change current contracts,” explained vzbv board member Ramona Pop.

Vodafone said it would now analyze the decision and possible impacts.

The Hamm Higher Regional Court is also looking at the ruling from Luxembourg, before which a large class action lawsuit is currently underway against a price increase by Vodafone for fixed-line internet in 2023.

Current contracts of around ten million customers were affected.

The German court had suspended the proceedings until the ECJ decision.

In the specific cases, the German courts still have to decide and take into account the ECJ ruling.