CMA seeks views on Vodafone’s merger with rival network Three
Early views are being sought by the CMA on the proposed UK merger between Three and Vodafone.
The Competition and Markets Authority (CMA) is today providing an early opportunity for interested third parties to comment on the impact that the merger could have on competition in the UK, in advance of launching a formal investigation once it has received the information it needs from the merging companies.
Vodafone UK (which is owned by Vodafone Group Plc) and Three UK (which is owned by CK Hutchison Holdings Limited) are major providers of mobile telecommunication services in the UK.
Sarah Cardell, chief executive of the CMA, said:
Millions of consumers and businesses in the UK rely on Vodafone’s and Three’s mobile networks to stay connected.
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.
This is an opportunity for those with an interest in this merger to let us know their views before we launch a full investigation.
The CMA’s 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 may choose to intervene under the National Security and Investment Act if it finds concerns.
The CMA is now inviting views on the impact of the deal on competition to assist with its evidence gathering ahead of launching a formal investigation. Further opportunities to submit views will be provided once the CMA begins its formal Phase 1 investigation.
More information on the CMA’s investigation can be found on the Vodafone / Three case page.
Notes To Editors
- The 4 mobile network operators in the UK are Vodafone UK, Three UK, BT’s EE and Virgin Media O2.
- While it is for the CMA to investigate and decide whether this merger can proceed, it will consult Ofcom as the sectoral regulator which oversees mobile communications.
- This invitation to comment (ITC) is being launched before the CMA starts its Phase 1 merger investigation. The CMA needs to gather certain information from Vodafone and Three before it can start a formal Phase 1 investigation, including information about their UK activities, data and internal documents. This period of information gathering is known as pre-notification and can take a number of months. Once underway, a Phase 1 merger investigation must be completed within 40 working days. If the CMA finds the merger could lead to a substantial lessening of competition, then it can refer it for a more in-depth Phase 2 merger investigation. Phase 2 investigations last 24 weeks and are led by an independent panel of experts.
- For media enquiries, contact the CMA press office on 020 3738 6460 or [email protected].