The UK Competition and Markets Authority recently determined, at the conclusion of Phase 2 of its investigation of the Vodafone/Three merger, that the merger could proceed if certain remedies were implemented. While the CMA previously had concerns that the merger could lead to higher prices and harm the position of other mobile virtual network operators in the industry, the CMA provisionally found that a network integration and investment program proposed by Vodafone and Three could significantly improve the quality of the merged company’s mobile network, which would boost competition between mobile network operators in the long term. However, the CMA determined that such a proposal would require the implementation of short term protections that would enable retail customers and mobile virtual network operators to secure good deals during the early years of the joint network’s roll-out.
On November 5, 2024, the CMA published a Remedies Working Paper summarizing their proposed remedies, which would require Vodafone/Three to deliver their joint network plan over the next 8 years; retain certain existing mobile tariffs and databases for at least 3 years; and commit to pre-agreed prices and contract terms that would enable mobile virtual network operators to obtain competitive wholesale deals. The CMA encouraged industry stakeholders to provide feedback by November 12, 2024, and promised to deliver a final decision by December 7, 2024, the statutory deadline.
In October 2023, the CMA launched an investigation into the merger of Vodafone UK (owned by Vodafone Group Plc) and Three UK (owned by CK Hutchison Holdings Limited) – a joint venture intended bring approximately 27 million mobile customers under a new, single network operator. The CMA informed Vodafone UK and Three UK, in January 2024, that it had initiated Phase 1 of its investigation. In March 2024, the CMA announced its decision to proceed with Phase 2 of its investigation after identifying potential problems with the deal, including concerns that the merger might reduce competition for new customers and affect competitive pressures that keep prices low.