The U.K.’s Competition and Markets Authority (CMA) has granted provisional regulatory approval of Virgin’s proposed merger with O2. When the deal was submitted last November, concerns arose with regulators over competition and consumer protection, reported Telecoms.
A joint venture could position Virgin and O2 to better compete with BT and EE, the U.K.’s largest broadband and mobile providers, which merged in 2016. According to Telecoms, the CMA is scrutinizing the deal to ensure it won’t lead to a price hike, reduce the quality of service, or withdraw the wholesale backhaul services currently offered to mobile companies.
The CMA has already completed the Phase 2 investigation of the matter. Martin Coleman, CMA Panel Inquiry Chair, said that “the deal is unlikely to lead to higher prices or a reduced quality of mobile services – meaning customers should continue to benefit from strong competition.”
Kester Mann, Director, Consumer and Connectivity at CCS Insight, added, “The [Virgin and O2] deal could still trigger a ripple effect on the UK market: Further deal-making – potentially including Vodafone, Three, and Sky – can’t be ruled out.”
Reader Interactions