The UK’s CMA has initiated a Phase 1 investigation to determine if Vodafone and Three‘s proposed merger would substantially lessen competition.
This is due to concerns that the merger could lead to higher prices for consumers and reduced quality of service.
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The merger would combine the two company’s 27 million customers into a single network provider.
The CMA began its investigation into the potential merger in January of this year.
The CMA identified several concerns including the potential for higher prices, reduced rivalry among mobile operators and difficulties for smaller virtual network operators to negotiate deals.
Both companies claimed the merger would benefit consumers and accelerate the deployment of new technologies. However, the CMA said it found insufficient evidence to support these claims.
The CMA has given Vodafone and Three five working days to provide meaningful solutions. Otherwise, the deal will undergo a more in-depth Phase 2 investigation.
In a press statement, the CMA emphasised the need for evidence-backed solutions to address the identified concerns.
Data from research company GlobalData found that by the end of 2023, mobile 5G subscriptions in Europe reached 216.4 million, or 15% of total mobile subscriptions.
By 2028, 5G subscriptions in Europe will account for 53% of total subscriptions.
