They (the regulators) said it couldn’t be done (originally), but in the end the Three merger was approved. The one from the United Kingdom Competition and markets authority (CMA) has given the green light to the merger between Three and Vodafone proposed by companies in June 2023. The decision follows that of an independent inquiry panel investigation in the impact of the move.
The CMA allows the deal to proceed provided “both companies sign binding commitments to invest billions to roll out a combined 5G network across the UK,” it said in a statement. “The network commitment would be supported by shorter-term customer protections that would require the merged company to cap certain mobile tariffs and offer pre-set contract terms to mobile virtual network operators, for a period of three years.” The CMA and Ofcom, the UK’s communications services regulator, will oversee both these commitments and the merged company will be required to produce an annual implementation report.
The chair of the independent inquiry group, Stuart McIntosh, explained: “We believe the merger is likely to increase competition in the UK mobile sector and should be allowed to proceed, but only if Vodafone and Three agree to implement the measures proposals”.
Three tried to merge with O2 in 2015, but the European Commission (yes, it was pre-Brexit) he blocked it a year later. European Competition Commissioner Margrethe Vestager later said the concessions offered by Three would not offset the deal’s potential to limit competition and lead to higher prices. The CMA agreed but, in 2021, allowed O2 will merge with Virgin Mediaestablishing that it would not have a “substantial” character impact on competition due to the nature of their combined offerings.
