Motorola Solutions to Appeal CMA’s Unprecedented Final Decision
05 Aprile 2023 - 11:09AM
Business Wire
Company believes the CMA’s egregious overreach
cannot be justified on competitive, economic or legal grounds
Motorola Solutions (NYSE: MSI) today issued the following
statement in response to the United Kingdom’s Competition and
Markets Authority’s (CMA) final decision regarding its Mobile Radio
Network Services market investigation. The CMA intends to impose a
price control on Airwave, the private mobile radio communications
network that Motorola Solutions acquired in 2016, altering a
long-term contract that was mutually agreed, duly executed and is
still in effect.
“Motorola Solutions strongly disagrees with
the CMA’s final decision and believes it cannot be justified on
competitive, economic or legal grounds. We will appeal the
decision.
In 2016, the Home Office negotiated and
agreed to the fixed price Airwave contracts, which were also
provided to the CMA as part of the CMA’s approval of Motorola
Solutions’ acquisition of Airwave. Despite the CMA finding no
shortcomings in Airwave’s exceptional service, the CMA intends to
forcibly reduce the contractually agreed pricing going forward. We
believe this unprecedented overreach will have a chilling effect on
long-term investment and contracting with the U.K. government.
Motorola Solutions is committed to vigorously
protecting its contractual position in delivering the Airwave
network, an essential service that operates at the highest levels
and is relied upon by the 300,000 emergency services professionals
who protect communities across the U.K. every day.”
About Motorola Solutions
Motorola Solutions is a global leader in public safety and
enterprise security. Our solutions in land mobile radio
communications, video security & access control and the command
center, bolstered by managed & support services, create an
integrated technology ecosystem to help make communities safer and
businesses stay productive and secure. At Motorola Solutions, we’re
ushering in a new era in public safety and security. Learn more at
www.motorolasolutions.com.
Notes to editors:
- If Airwave is continued on the existing agreed terms until the
end of its life in 2026, the Home Office will have enjoyed a better
deal than it agreed to at the outset of the contract, and better
terms than the U.K. government typically accepts even for
non-mission-critical service contracts.
- The independent National Audit Office’s report issued on March
8, 2023 recognized that the Airwave network operates at the highest
levels of reliability and coverage.
- The Airwave service delivers exceptional value for money for
the U.K. taxpayer. Motorola Solutions has provided price reductions
even while making significant investments - over $1 billion since
2016 - to maintain the network, which is relied upon by the U.K.
emergency services every day and continues to function at the
highest levels.
Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of applicable federal securities law. These statements
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and generally include
words such as “believes,” “expects,” “intends,” “anticipates,”
“estimates” and similar expressions. The company can give no
assurance that any actual or future results or events discussed in
these statements will be achieved. Any forward-looking statements
represent the company’s views only as of today and should not be
relied upon as representing the company’s views as of any
subsequent date. Readers are cautioned that such forward looking
statements are subject to a variety of risks and uncertainties that
could cause the company’s actual results to differ materially from
the statements contained in this release. Such forward-looking
statements include, but are not limited to, the impact of the CMA’s
decision regarding Airwave, including the financial and business
consequences of legal actions taken regarding the contract for the
Airwave network and Motorola Solutions’ actions in response to the
decision. Motorola Solutions cautions the reader that the risks and
uncertainties below, as well as those in Part I Item 1A of Motorola
Solutions’ 2022 Annual Report on Form 10-K and in its other SEC
filings available for free on the SEC’s website at www.sec.gov and
on Motorola Solutions’ website at www.motorolasolutions.com, could
cause Motorola Solutions’ actual results to differ materially from
those estimated or predicted in the forward-looking statements.
Many of these risks and uncertainties cannot be controlled by
Motorola Solutions, and factors that may impact forward-looking
statements include, but are not limited to: (i) the impact,
including increased costs and potential liabilities, associated
with changes in laws and regulations and administration
determinations; (ii) additional compliance obligations and
decreased revenues or increased risk, costs and competition
associated with the expansion of our technologies within our
Products and Systems Integration and Software and Services segments
(including, but not limited to, with respect to the CMA's decision
regarding Airwave); (iii) risks related to our large, multi-year
system and services contracts (including, but not limited to, with
respect to the Emergency Services Network and Airwave contracts);
and (iv) the inability of our products to meet our customers’
expectations or regulatory or industry requirements or standards.
Motorola Solutions undertakes no obligation to publicly update any
forward-looking statement or risk factor, whether as a result of
new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20230404006127/en/
Media Contacts Alexandra Reynolds +1 312-965-3968
Alexandra.Reynolds@motorolasolutions.com
Elvan Lindberg +46 (0)707448893
Elvan.Lindberg@motorolasolutions.com
Investor Contact Tim Yocum +1 312-576-6899
Tim.Yocum@motorolasolutions.com
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