Regulatory Body Finds Vodafone And Three Merger Would Raise Prices, Seeks Remedies

The UK’s competition watchdog, the Competition and Markets Authority (CMA), has raised concerns about the proposed merger between Vodafone and Three UK, owned by CK Hutchison. The regulator warned that the deal could lead to higher prices or reduced services for millions of customers, particularly affecting Mobile Virtual Network Operators (MVNOs) that rely on existing infrastructure. The CMA stated that the merger would likely reduce competition in both retail and wholesale mobile markets by consolidating the number of major telecom players from four to three.

Vodafone and CK Hutchison have defended the merger, claiming it would enhance mobile network quality and accelerate the deployment of 5G services across the UK. Vodafone also pledged to invest £11 billion in telecommunications infrastructure, arguing that the investment would help improve digital infrastructure in the country.

Despite these promises, the CMA remains sceptical, suggesting that the benefits of the merger may be overstated and that the merged entity may not follow through on its proposed investments. The CMA will now consult on its findings, and if concerns are not adequately addressed, the regulator could block the deal. A final decision is expected by December 7.