A deal to create the UK’s biggest mobile phone operator has been struck by Vodafone and the owner of Three UK.
The firms plan to merge their UK-based operations, giving them around 27 million customers and making it the biggest mobile network in the UK.
Virgin Media O2 has around 24 million mobile customers while EE, which is owned by BT Group, has 20 million users.
The deal is yet to be approved by the Competition and Markets Authority (CMA), which will look at whether it will push up customer prices.
The competition watchdog said: “Both Vodafone and Three are key players in the UK communications market – with millions of consumers and many businesses relying on their services – so it’s right that the CMA reviews the impact this deal could have on competition.”
The CMA is responsible for maintaining competition within the economy and preventing anti-competitive action, such as large mergers which lead to monopolies.
The watchdog rarely intervenes, as demonstrated in this latest case, where the market has already seen Virgin Media and O2 merge, meaning consumers have only four options to choose from for their mobile network. This latest move would see competition depleted further, with options for consumers reduced from four to three.
While it is positive that the CMA would examine this merger, waiting until now to take action seems very much like locking the gate after the horse has bolted.
It is the responsibility of government to ensure the economy works for its people, and maintaining options for consumers is a part of that responsibility. A Homeland Party government would ensure the CMA took this responsibility seriously, and provide the regulatory tools necessary for the watchdog to take proactive action.
