The CMA will now quickly move to a Phase 2 investigation, upon request from the two companies.
A merger notified to the EC despite Brexit: In May 2020, Telefonica and Liberty Global announced the intention to merge their UK operations (O2 and Virgin Media, respectively). Despite the UK’s imminent departure from the EU, the parties still had to notify the European Commission, which rarely refers mergers to national authorities. On 8 October 2020, the UK Competition and Markets Authority (CMA) asked the EC for competency to review the merger.
The EC approves the request: On 19 November 2020, the EC referred the merger to the CMA, having found that it will affect the UK market only. The two authorities have cooperated closely up until now, and the review will continue uninterrupted.
The CMA moves quickly: On the same day, the CMA opened a consultation on the merger until 26 November 2020. The merging companies have requested to fast-track to Phase 2, where a more in-depth investigation will be carried out. The CMA expects to satisfy the request. The authority believes the merger has potential impact on several retail and wholesale markets in the UK, and that it requires careful review to ensure consumers are protected.
