{"id":35974,"date":"2023-10-11T12:49:05","date_gmt":"2023-10-11T11:49:05","guid":{"rendered":"https:\/\/www.ispreview.co.uk\/?p=35974"},"modified":"2023-10-11T13:46:49","modified_gmt":"2023-10-11T12:46:49","slug":"competition-authority-consults-on-vodafone-and-three-uk-merger","status":"publish","type":"post","link":"https:\/\/www.ispreview.co.uk\/index.php\/2023\/10\/competition-authority-consults-on-vodafone-and-three-uk-merger.html","title":{"rendered":"Competition Authority Consults on Vodafone and Three UK Merger"},"content":{"rendered":"

The Competition and Markets Authority (CMA) has today opened up a consultation for feedback on the proposed mobile mega-merger between Three UK<\/a> and Vodafone<\/a> (here<\/a>), which would reduce the number of mobile operators in the market from four to three and may thus impact upon competition, consumer prices, jobs and security.<\/p>\n

The agreement, which would see Vodafone<\/a> hold a 51% slice of the business and CK Hutchison (Three UK<\/a>) retain 49%, has thus far been promoted as something that would be \u201cgreat for customers, great for the country and great for competition<\/em>,\u201d while also resulting in a major \u00a311bn<\/strong> investment to upgrade the UK\u2019s 5G<\/a> mobile (broadband) infrastructure and network coverage.<\/p>\n

NOTE:<\/strong> The combined business aspires to reach more than 99% of the UK population with their 5G<\/a> Standalone (SA) network by 2034 and push fixed wireless access (mobile home broadband) to 82% of households by 2030, among other things.<\/div>\n

However, regulators and politicians are known to be cautious, particularly given the concerns over any potentially negative impacts upon competition (e.g. both at retail and wholesale) and consumer prices that may result from having fewer primary operators. Not to mention some fears over national security (i.e. Three UK<\/a> is owned by CK Hutchison, which is perceived as being closely tied to China) and the risk of job losses (here<\/a> and here<\/a>).<\/p>\n

The UK is not the first market to run into such concerns and EU regulators, as well as Ofcom<\/a>, previously took the approach of effectively blocking such agreements. But that changed in 2020 after a ruling by the European Court of Justice<\/strong> (here<\/a>) found that having only 3 operators still made for a competitive market, although this isn’t a green card for success and significant concessions may still end up being required.<\/p>\n

Sarah Cardell, CEO of the CMA, said:<\/strong><\/p>\n

“Millions of consumers and businesses in the UK rely on Vodafone<\/a>\u2019s and Three\u2019s mobile networks to stay connected.<\/p>\n

We will be carefully considering how this deal may affect competition in the UK, which could affect the options and prices available to customers. We will also assess how it may affect incentives to invest in the quality of UK mobile networks.<\/p>\n

This is an opportunity for those with an interest in this merger to let us know their views before we launch a full investigation.”<\/p><\/blockquote>\n

The CMA\u2019s remit, by law, is to assess the potential impact of a merger on competition. It cannot consider other potential effects that a merger might have, for example, on employment or access to personal data. Any national security concerns would be a matter for the UK government, which could potentially intervene under the National Security and Investment Act if it finds concerns, but so far we’ve seen no solid indications of that.<\/p>\n

According to the CMA’s related merger page<\/a> for the deal, the regulator will seek initial feedback until 1st November 2023 before proceeding with a formal phase one investigation. But the reality with a deal this big is that the CMA will almost certainly find cause to go through both a phase 1 and deeper phase 2 investigation, as should be considered fairly normal – even for less contentious mergers.<\/p>\n

Both Vodafone and Three UK<\/a> have spoken of their desire for the transaction to close before the end of 2024, but that will be subject to regulatory approvals. The CMA notes that a Phase 1 merger investigation must be completed within 40 working days, while Phase 2 investigations can last 24 weeks.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Competition and Markets Authority (CMA) has today opened up a consultation for feedback on the proposed mobile mega-merger between Three UK and Vodafone (here), which would reduce the number of mobile operators in the market from four to three and may thus impact upon competition, consumer prices, jobs and security.<\/p>\n","protected":false},"author":1,"featured_media":34985,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[472,38,479,63,96],"class_list":["post-35974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uk_isp_news","tag-business","tag-politics","tag-security","tag-three-uk","tag-vodafone"],"share_on_mastodon":{"url":"https:\/\/mastodon.social\/@ispreview\/111216233544272442","error":""},"yoast_head":"\nCompetition Authority Consults on Vodafone and Three UK Merger - ISPreview UK<\/title>\n<meta name=\"description\" content=\"The Competition and Markets Authority (CMA) has today opened up a consultation for feedback on the proposed mobile mega-merger between Three UK and\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ispreview.co.uk\/index.php\/2023\/10\/competition-authority-consults-on-vodafone-and-three-uk-merger.html\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Competition Authority Consults on Vodafone and Three UK Merger - 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