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Beware subscription businesses: what Ofcom's £28 million penalty means for CMA ...

Published

9 July 2026

Topic

opportunities

Sectors

Enterprise Software

Geography

United Kingdom

Source

Read at lewissilkin.com

Verified

Fusion42 · 10 July 2026 · Fusion42 review

Ofcom issued a £28 million fine against Virgin Media for systematically obstructing customer cancellations through two-tier call processes, excessive holds, and agent commission schemes designed to retain customers. The case offers a regulatory blueprint for the CMA's enforcement of new subscription rules launching spring 2027, which will cover millions of non-telecoms subscriptions from gyms to antivirus software.

This Wire brief sits within Fusion42's coverage of Enterprise Software.

◆ The Wire takeaway

If your subscription business relies on call-centre friction to block cancellations or uses agent commission to push retention, the CMA now has a £28 million penalty template and will enforce it from spring 2027 – rewrite your cancellation path to automated online before then. The fine was 30% discounted for admission; repeat offenders get uplift.

Coverage

1 source · 9 Jul 2026

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Topics

Enterprise Softwaresubscription-enforcementcma-penaltiescancellation-frictioncustomer-retentionregulatory-precedent