Merger plans by Vodafone and Three could result in higher prices for mobile customers, the competition regulator has warned.
Under the proposals Vodafone would own 51 per cent of the combined entity, which would have around 27 million customers.
The Competition and Markets Authority (CMA) says the merger could lead to “higher prices and reduced quality” because the combination risks reducing rivalry between operators.
“Whilst Vodafone and Three have made a number of claims about how their deal is good for competition and investment, the CMA has not seen sufficient evidence to date to back these claims,” said Julie Bon, Phase 1 decisionmaker for this case at the CMA.
“Our initial assessment of this deal has identified concerns which could lead to higher prices for customers and lower investment in UK mobile networks. These warrant an in-depth investigation unless Vodafone and Three can come forward with solutions.”
The CMA has given the two companies five working days to respond to its concerns. If it is not satisfied an in-depth investigation will be launched which could result in the merger being blocked.
