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.
