Vodafone and UK watchdog clash over Three merger concerns

Vodafone and Three have proposed a merger of their UK operations, aiming to create the largest mobile network in the country with approximately 27 million customers. However, the UK's Competition and Markets Authority (CMA) has provisionally concluded that this merger could significantly reduce competition among mobile networks, raising concerns about potential price increases for consumers, particularly those who are least able to afford mobile services. The CMA's findings suggest that the merger could lead to a substantial lessening of competition, despite Vodafone and Three's claims that it would enhance network quality and accelerate the rollout of 5G services. Vodafone's UK chief, Ahmed Essam, expressed confidence that the merger would ultimately benefit customers and enhance competition in the market. He indicated a willingness to commit to legally binding investments to address the CMA's concerns. However, the CMA remains skeptical, stating that the anticipated benefits of improved services and investments may be overstated and that the merged entity might lack the incentive to follow through on these commitments. Consumer advocacy groups have voiced their apprehensions, highlighting that the merger could negatively impact millions of consumers. Rocio Concha from Which? emphasized the challenges the CMA may face in finding effective remedies to address its concerns about competition. The CMA is set to issue a final report on the merger in December, which will determine the future of this significant deal in the UK telecommunications market.