Ofcom Fines Virgin Media O2 Record £28 Million Over Cancellations

The UK communications regulator Ofcom fined Virgin Media O2 a record £28 million for deliberately obstructing millions of customers from cancelling broadband, landline, and pay-TV contracts between January 2022 and September 2024. The investigation, sparked by nearly 2,000 complaints, revealed that the company used tactics such as dropping calls, excessive hold times, and unnecessary transfers to prevent users from switching to competitors. Ofcom found that Virgin Media O2 utilized a commission scheme that financially rewarded staff for preventing cancellations. Some customers who bypassed these hurdles by cancelling through their banks reportedly suffered negative impacts on their credit scores.

Ofcom described the penalty as the largest ever levied under its consumer protection rules for direct harm to consumers, noting that the company failed to cooperate fully with the investigation. Virgin Media O2 apologized for the issues and stated it has since redesigned its customer services to address these historic shortfalls. Rocio Concha of the consumer group Which? called the tactics deeply cynical during a cost-of-living crisis.

In a separate regulatory action, the Commission for Communications Regulation (ComReg) imposed a €250,000 penalty on Sky Ireland. ComReg found that between July 2023 and December 2024, Sky's termination procedures—including excessive wait times and chat-based impediments—discouraged customers from changing providers in violation of the European Electronic Communications Code. Unlike Virgin Media O2, Sky Ireland cooperated with the investigation and agreed to the settlement and additional remedial actions.