Phones 4U Limited

Claim No. CP-2018-000038 IN THE HIGH COURT OF JUSTICE BUSINESS AND PROPERTY COURTS COMPETITION LIST (ChD) BEFORE: MR JUSTICE ROTH BETWEEN: - PHONES 4U LIMITED (In Administration) Claimant -and- (1) EE LIMITED (2) DEUTSCHE TELEKOM AG (3) ORANGE SA (4) VODAFONE LIMITED (5) VODAFONE GROUP PUBLIC LIMITED COMPANY (6) TELEFONICA UK LIMITED (7) TELEFÓNICA, S.A. (8) TELEFONICA EUROPE PLC Defendants CLAIMANT’S SKELETON ARGUMENT FOR THE CMC ON 2-3 JULY 2020 References to the electronic bundle on Opus 2 are in the form {Bundle/document/page} and should appear as live links within the system. Filed with this Skeleton Argument are the following: 1. Agreed Reading List. 2. Agreed Parties and Representation Table. Phones 4u apologises for the length of this Skeleton Argument. This results from an attempt to capture the key points from the recent disclosure correspondence (in preference to inviting the Court to read that lengthy correspondence). A disclosure letter from Orange, received after 3pm today, has not been taken into account in the finalisation of this Skeleton Argument. 1 TABLE OF CONTENTS A. INTRODUCTION ..................................................................................................... 3 Summary of progress in relation to disclosure ............................................................... 3 Applications made by Ds in relation to security for costs and further information ......... 5 B. BACKGROUND ....................................................................................................... 6 Factual background ...................................................................................................... 6 Outline procedural background ..................................................................................... 8 C. DISCLOSURE BY PHONES 4U ............................................................................... 9 Reliance-only disclosure.............................................................................................. 10 Issues for disclosure .................................................................................................... 11 Disclosure from the Joint Administrators .................................................................... 11 Search terms and connectors ....................................................................................... 12 Mobile phones ............................................................................................................. 13 Hardcopy documents ................................................................................................... 13 D. DISCLOSURE BY THE DEFENDANTS GENERALLY ....................................... 14 Document loss and destruction .................................................................................... 14 Custodian (or “participant”) and document hit reports ............................................... 15 Recipients of document hold notices ............................................................................ 18 Staged disclosure ........................................................................................................ 19 Date range for disclosure searches.............................................................................. 21 Personal devices, email and social media accounts ..................................................... 22 Telephone call records ................................................................................................ 23 Unfiltered searches ..................................................................................................... 24 E. DISCLOSURE BY EE ............................................................................................ 24 Disclosure custodians.................................................................................................. 24 Early disclosure of external communications ............................................................... 24 Other outstanding matters ........................................................................................... 25 F. DISCLOSURE BY DT ............................................................................................ 26 Disclosure custodians.................................................................................................. 26 Unfiltered searches ..................................................................................................... 30 Other outstanding matters ........................................................................................... 31 G. DISCLOSURE BY ORANGE ................................................................................. 31 Disclosure custodians.................................................................................................. 31 Other outstanding matters ........................................................................................... 35 H. DISCLOSURE BY THE VODAFONE DS .............................................................. 35 Disclosure custodians.................................................................................................. 35 The Vodafone SMS spreadsheet ................................................................................... 36 Unfiltered searches ..................................................................................................... 36 Other outstanding matters ........................................................................................... 36 I. DISCLOSURE BY THE TELEFONICA DS............................................................ 36 Disclosure custodians.................................................................................................. 37 Other outstanding matters ........................................................................................... 37 J. SECURITY FOR COSTS ........................................................................................ 38 Applications by EE, DT and Orange for security at 75% ............................................. 39 The Telefonica Ds’ application for an order requiring “ring-fencing” ........................ 44 K. DIRECTIONS ......................................................................................................... 46 Directions to trial ........................................................................................................ 46 Application by DT for a further RFI Response ............................................................. 50 2 A. INTRODUCTION 1. This is the Skeleton Argument for C, “Phones 4u”, for the re-listed CMC on 2-3 July 2020. It is the second CMC and was listed for the purpose of addressing disclosure issues. 2. Until the events at issue in these proceedings, Phones 4u was one of the two major retail intermediaries for mobile telephones in the UK, the other being Carphone Warehouse (“CPW”). Phones 4u alleges that Ds colluded in relation to supplies to these retail intermediaries, coordinating an exit from their trading relationships with Phones 4u and putting it out of business. Phones 4u went into administration in September 2014. This removed the competition between Phones 4u and CPW. Putting Phones 4u out of business also removed competition between Phones 4u and the MNOs’ retail outlets. 3. These proceedings are brought by the Joint Administrators. Phones 4u claims against all Ds for an infringement of Article 101 TFEU and/or section 2 of the Competition Act 1998 and against D1 (“EE”), D2 (“DT”) and D3 (“Orange”) for breach of contract, inducement of breach of contract and conspiracy. The competition claim is the main focus of the parties’ disclosure discussions. 4. The present hearing was ordered at the first CMC (3-4 March 2020) and was listed to come after the exchange of Disclosure Schedules (and comments on those schedules) and for the purpose of making disclosure orders: “A second Case Management Conference be listed for 2 days on the first date available in June 2020 (with one additional day pre-reading), when the Court will make orders for disclosure on the basis that such disclosure is to be given within 7 months thereafter.” (para.8 of the Directions Order dated 19 March 2020 {A/40/2}) Summary of progress in relation to disclosure 5. Phones 4u raised at the first CMC serious concerns in relation to Ds’ failure to preserve relevant documents, including after being put on notice of the allegations in these proceedings and the intention to bring a competition claim. There remain grave concerns. 6. It is common ground that standard disclosure is appropriate. The parties have made good progress towards reaching agreement on what standard disclosure requires in this case. The exchange of Disclosure Schedules (“DS”) assisted in this regard. The rate of progress 3 increased markedly in the immediate run-up to the exchange of Skeleton Arguments on 5 June 2020. There has also been cooperation in the extra time created by the re-listing. Developments shortly before the exchange of (original) Skeleton Arguments on 5 June 2020 7. Shortly before exchange, some Ds made substantially revised disclosure proposals: (1) On 3 June 2020, EE sent a 34-page letter in which it provided detailed responses to Phones 4u’s comments on its DS. Amongst other things, EE has now agreed to provide early disclosure of certain key documents relating to board and other important internal meetings in the relevant period,1 and it appears willing to disclose early certain external communications with other Ds.2 (2) On 4 June

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