CMA seeks feedback on Vodafone's planned merger with Three UK

Vodafone’s planned merger with Three UK came under the Competition and Markets Authority (CMA) spotlight on Wednesday, as the regulator invited feedback from third parties over the impact it could have on the competitive landscape.

Vodafone UK is a subsidiary of the London-listed Vodafone Group, while Three UK operates under Hong Kong conglomerate CK Hutchison Holdings.

The CMA said it was a preliminary chance for stakeholders to voice concerns or observations before an official investigation was launched.

It said its focus under the law was to meticulously assess the impact the merger could impose on competition within the telecommunication sector in the UK.

The CMA noted that its jurisdiction did not extend to evaluating the merger’s potential effects on aspects like employment or access to personal data, adding that it would maintain a singular focus on the competition aspects of the merger.

Concerns about national security arising from the merger would be outside its purview and fall to the UK government, which could intervene under the National Security and Investment Act should it identify issues that warrant it.

In the lead-up to a formal phase one investigation, the CMA said it was actively seeking views from various stakeholders to fortify its evidence gathering.

Subsequent opportunities for entities to submit perspectives would also be made available once the formal investigative phase was underway, ensuring an inclusive and thorough analysis.

“Millions of consumers and businesses in the UK rely on Vodafone’s and Three’s mobile networks to stay connected,” said the CMA’s chief executive officer, Sarah Cardell.

“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.”

There are currently four mobile network operators in the UK, being Vodafone, Three, EE and O2.

At 1235 BST, shares in Vodafone Group were up 0.41% at 77.71p.

Reporting by Josh White for Sharecast.com.