Wireby Fusion42
Read this story on the live Wire →

Wire · founder news, decoded · opportunities

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

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. Wire is Fusion42's founder-focused intelligence feed: each story is connected to the funds and startups it names — every one with a live profile on Raise or Scout — so founders can follow the capital and the momentum behind the headline rather than just the headline itself. Wire analysis is one of the live surfaces Arthur, Fusion42's AI co-founder, reasons over.

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.

Read the full story at lewissilkin.com

Topics: Enterprise Software · subscription-enforcement · cma-penalties · cancellation-friction · customer-retention · regulatory-precedent

Related on Wire

Verified 10 July 2026 · Sources: Fusion42 review