Vodafone-Three Merger to Face In-Depth Probe by Competition Watchdog
Quote from VATcal on 04/04/2024, 19:50The proposed £15 billion merger between Vodafone and Three has been referred for a Phase 2 investigation by the Competition and Markets Authority (CMA), raising concerns about potential price hikes and a decline in service quality for mobile phone users in the UK.
The decision comes after Vodafone and Three failed to address the CMA's initial anxieties about the deal's impact on competition. The regulator fears the combined entity, which would create the UK's largest mobile network with 27 million customers, could lead to a significant lessening of competition. This, in turn, could result in higher prices for consumers across all mobile networks, not just those merging.
The CMA expressed concerns in March 2024 that the merger might also negatively affect service quality. They offered Vodafone and Three a deadline of April 2nd to propose solutions that would alleviate these worries. However, the companies declined to do so.
Despite the investigation, Vodafone and Three remain confident that the merger will benefit customers and businesses. In a joint statement, they argued the deal would "drive stronger competition in the mobile sector" and deliver "a step-change in network quality, speed, and coverage from day one."
The investigation is expected to take at least 24 weeks. The CMA has the authority to block the merger entirely if it finds it would be detrimental to competition.
The proposed £15 billion merger between Vodafone and Three has been referred for a Phase 2 investigation by the Competition and Markets Authority (CMA), raising concerns about potential price hikes and a decline in service quality for mobile phone users in the UK.
The decision comes after Vodafone and Three failed to address the CMA's initial anxieties about the deal's impact on competition. The regulator fears the combined entity, which would create the UK's largest mobile network with 27 million customers, could lead to a significant lessening of competition. This, in turn, could result in higher prices for consumers across all mobile networks, not just those merging.
The CMA expressed concerns in March 2024 that the merger might also negatively affect service quality. They offered Vodafone and Three a deadline of April 2nd to propose solutions that would alleviate these worries. However, the companies declined to do so.
Despite the investigation, Vodafone and Three remain confident that the merger will benefit customers and businesses. In a joint statement, they argued the deal would "drive stronger competition in the mobile sector" and deliver "a step-change in network quality, speed, and coverage from day one."
The investigation is expected to take at least 24 weeks. The CMA has the authority to block the merger entirely if it finds it would be detrimental to competition.
