The government may have to give a £300m refund to mobile phone firms after the Court of Appeal upheld a legal challenge over annual licence fees (ALF).
The move follows a decision by telecoms regulator Ofcom, on government orders, to increase the licence fees that firms pay for using the airwaves.
The fee was tripled, sparking angry protests from mobile phone operators.
No legal powers
Now the Court of Appeal has upheld the claim by operators that the government has no legal power to order Ofcom to increase fees.