On December 5, 2024, the UK Competition and Markets Authority announced that it cleared the merger of mobile telecommunications service providers Vodafone UK and Three UK – a behavioral remedy of which the CMA has traditionally been very resistant. The merger was approved only if both companies sign binding commitments to invest billions, over the next 8 years, to roll out a combined 5G network across the United Kingdom. According to the CMA, the proposed network commitment will be supported by customer protections for both retail and wholesale customers, including a requirement for the merged company to cap certain mobile tariffs and other preset contractual terms to mobile virtual network operators for a period of three years.
If Vodafone and Three agree to these legally binding commitments, the CMA indicated that it would work to implement them. According to the CMA’s final decision, the proposed commitments would be overseen by the CMA and UK telecommunications regulator Ofcom. The CMA also reported that it would be responsible for monitoring and enforcing the consumer protections and that the merged company would be required to publish annual reports on its implementation of the network plan. However, if Vodafone and Three failed to agree to the commitments, the CMA indicated that it would block the deal.
On December 5, 2024, the CMA also issued updated guidance regarding its final decision and how it could impact customers.
In October 2023, the CMA launched an investigation into the Vodafone-Three merger regarding its potential impact on competition in the UK’s mobile telecommunications services market. In January 2024, the CMA informed the companies that it had initiated Phase 1 of its investigation, and, in March 2024, announced plans to proceed with Phase 2 after finding that the merger might reduce competition for new customers and affect competitive pressures to keep prices low. In November 2024, the CMA also published a Remedies Working Paper summarizing the proposed remedies, while encouraging industry stakeholders to provide feedback on the remedies before a final decision was made.
CMA Press Release | CMA – Summary of Final Decision | Final Decision | CMA – Vodafone/Three merger inquiry | CMA Guidance on Vodafone/Three merger