Vodafone and Three UK Challenge CMA’s Concerns Over Proposed Merger

Vodafone and Three UK Challenge CMA’s Concerns Over Proposed Merger

(IN BRIEF) Vodafone and Three UK have responded to the CMA’s provisional findings, disputing concerns that their merger could reduce competition and lead to price increases. The companies argue that the £11 billion merger will improve 5G infrastructure, enhance competition, and benefit over 50 million customers across the UK. They are committed to working with the CMA to address concerns and highlight that their pricing strategy will not be affected by the merger. Both companies emphasize that the merger is vital for boosting the UK’s digital infrastructure and economy.

(PRESS RELEASE) BERKSHIRE, 14-Sep-2024 — /EuropaWire/ — Vodafone and Three UK have expressed disagreement with the Competition and Markets Authority’s (CMA) provisional findings that suggest the proposed merger between the two telecom giants may raise competition concerns and potentially lead to price increases for consumers. The companies emphasize that the merger is a crucial opportunity to revolutionize the UK’s digital infrastructure through an £11 billion investment plan, aiming to improve 5G coverage and network quality across the country.

According to Vodafone and Three, the merger will address the UK’s lagging performance in 5G availability, where it currently ranks 22nd out of 25 European countries. The companies argue that the merger will enhance competition, not stifle it, by improving network quality and capacity, which will benefit over 50 million mobile customers. They also challenge the CMA’s concerns about pricing, stating that there are no plans for price hikes, and prices may actually fall due to stronger competitive pressures.

Vodafone’s CEO, Margherita Della Valle, and Three UK’s CEO, Robert Finnegan, both emphasized the need to fix the UK’s “dysfunctional” mobile market and assured that the merger would unlock significant benefits for consumers, businesses, and the public sector. They remain committed to working with the CMA to address its concerns and demonstrate the merger’s long-term value for the UK’s digital economy.

The companies will continue to engage with the CMA, confident that the merger can be approved and will play a pivotal role in modernizing the UK’s telecoms infrastructure and fostering economic growth.

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SOURCE: Vodafone Group