A planned merger between Vodafone’s UK operation and Hutchison’s Three UK unit could face a 24-week in-depth investigation after Britain’s antitrust regulator said on Friday the tie-up risked leaving consumers worse off.
The $19 billion deal was announced last year, and if it proceeds, would reduce the number of mobile networks in Britain from four to three. It would therefore be expected to require an in-depth investigation on the basis of the long-held tenet that at least four networks are required to keep prices low. The Competition and Markets Authority (CMA) on Friday gave the two companies five working days to respond with “meaningful solutions” to its concerns that the merger will result in higher prices for consumers and businesses, and lower investment.
Given the complex nature the deal, with no clear cut divestments available to address competition concerns, it seems…
