Vodafone and Three £15bn merger could get green light, CMA says

The watchdog had concerns that the merger could lead to higher prices for customers and harm the position of virtual network operators such as Sky Mobile and Lebara.

But on Tuesday, the CMA said it had outlined certain actions to be taken by the combined group that were likely to address its concerns.

This included committing to plans to upgrade the UK’s mobile network infrastructure over the next eight years, which would become a legal obligation overseen by regulators.

The pledge – which outlined £11 billion of investment – would boost competition between network providers in the UK, according to the CMA.

Vodafone and Three also must commit to not hiking prices for certain mobile tariffs for at least three years, which it said would protect millions of current and future customers.

Stuart McIntosh, chair of the inquiry group leading the investigation, said: "We believe this deal has the potential to be pro-competitive for the UK mobile sector if our concerns are addressed.

“Our provisional view is that binding commitments combined with short-term protections for consumers and wholesale providers would address our concerns while preserving the benefits of this merger.

“A legally binding network commitment would boost competition in the longer term and the additional measures would protect consumers and wholesale customers while the network upgrades are being rolled out.”

Today’s announcement is provisional, with a final decision due before the 7 December statutory deadline, the CMA said.

The inquiry group is inviting feedback on the announcement by 5pm on 12 November.

Vodafone and Three said they believe the CMA’s provisional findings provide “a path to final clearance” of their merger plans.

“The merger will be a catalyst for positive change,” spokespeople for the firms said.

“It will bring significant benefits to businesses and consumers throughout the UK, and it will bring advanced 5G to every school and hospital across the country.

“The merger is also closely aligned with the Government’s mission to drive growth and to encourage more private investment in the UK.”

The Competition and Markets Authority (CMA) is an independent non-ministerial department. Its work is overseen by a board, and led by the chief executive and senior team.