Union Calls to Block Vodafone-Three Merger

A proposed £15 billion merger between Vodafone and Three UK, aimed at creating the UK’s largest mobile phone operator, is under fire from the trade union Unite. The union has urged the Competition and Markets Authority (CMA) to block the merger, citing concerns that it could leave up to 1 million Three customers without access to cheaper alternative operators. The merger would consolidate 27 million customers under one provider, surpassing existing competitors EE and Virgin Media O2. The CMA has initiated a phase 2 investigation into the merger, extending its deadline for a final report from October 12 to December 7 due to the deal's complexity. Unite's submissions to the CMA reference a Survation study indicating that price is the primary concern for Three customers. The union argues that the merger would likely lead to price increases, as Three is currently the lowest-priced mobile network operator in the UK. Unite's analysis suggests that if the merger proceeds, approximately 9% of Three customers who might switch to Vodafone would lose their ability to choose a more affordable option, resulting in about 1 million consumers facing higher costs. Both Vodafone and Three contend that the merger is necessary for increased investment in 5G networks and to remain competitive against larger players like BT and Virgin Media O2. The CMA's initial phase 1 investigation raised concerns about potential reductions in competition, leading to higher prices and decreased investment in the UK mobile sector. The outcome of the ongoing investigation will be closely watched by consumers and industry stakeholders alike.