Carphone Warehouse sues Telefónica over alleged shortfall

Retailer alleges O2’s parent company has prevented it from hitting targets

Carphone Warehouse is suing Telefónica over claims that it breached its obligations with the retailer which caused it to suffer a £21.7 million profit shortfall.

The Sunday Times has reported that Carphone Warehouse has issued a High Court writ accusing Telefónica of not making enough special offers available, not handing over customer data and offering uncompetitive tariffs which meant that it was unable to hit its targets.

As a result, Carphone Warehouse believes it suffered a shortfall in profits, comprised of £9.6 million in direct profit, £4.5 million it would have received from Telefónica for hitting targets, and £7.6 million of potential profits from customers eligible for upgrades who would have been targeted with advertising.

Carphone Warehouse is seeking lost profits, interest and damages.

Telefónica said: “We do not accept Carphone’s allegations and we will be vigorously defending the claim.”

The news comes amid the ongoing legal battle between Phones 4u’s administrators and O2, EE, Vodafone and Carphone Warehouse over claims that the operators colluded to force the retailer out of business.