The CMA has published its provisional findings and potential remedies in respect of the proposed merger between Three and Vodafone, paving the way for a deal that would transform the mobile market and help deliver government ambitions for connectivity and economic growth.

Matthew Howett, Founder & CEO at Assembly comments:

“A deal of this size and scale was alway going to face intense scrutiny from the CMA, and it was fanciful that it could have been approved without any sort of remedies. The main impediment to it going through was the imposition of a structural remedy – anything that facilitated a new entrant and therefore re-created the problem the merger was trying to solve. With the CMA essentially having taken that off the table, for the first time we can see a pathway for the deal to complete.
“Concern over the impact of the merger on prices for consumers was predictable but is remediable. While prices in the UK are already some of the lowest among European peers (including the US and Japan), it’s possible to see a workable commitment to social tariffs, or contracts that give protection to the most sensitive to any rise in prices, even if by a small amount.
“A legally binding commitment to the £11bn of promised network investment, overseen by Ofcom, would be a win not only for consumers and network quality, but also for the new Labour government. As the EU is grappling with its own competitiveness relative to the US and Asia, regard must be given to the UK’s standing on the international stage. Draghi, in his report this week, set out the importance of infrastructure and connectivity to this story, and it’s encouraging that the CMA has essentially arrived at the same conclusion. With the UK economy failing to grow, and the new government’s number one mission for sustained economic growth – success or failure depends on private sector investment.”

Annex