UK regulator to conduct thorough investigation into $19 bn Vodafone-Three UK merger

The Competition and Markets Authority (CMA) in the UK has launched an in-depth investigation into the proposed $19 billion merger between Vodafone and Three UK. The merger could potentially result in higher prices for consumers, as per CMA concerns.

Vodafone UK and Three UK, two major providers of mobile telecommunication services in the UK, announced a joint venture agreement last year to bring their 27 million customers under a new, single network provider. The CMA initiated a formal probe in January this year.

The Phase 1 investigation revealed that combining the two businesses would reduce competition between mobile operators and possibly lead to higher prices and reduced quality for customers. The CMA is also concerned about the impact on smaller mobile ‘virtual’ network operators.

Julie Bon, Deputy Chief Economic Advisor at CMA, stated, “Our initial assessment of this deal has identified concerns which could lead to higher prices for customers and lower investment in UK mobile networks.” Vodafone and Three UK have until the end of the week to propose solutions to the CMA.