The EC will complete its initial assessment by 5 November 2020.
A large converged operator in the making: On 1 October 2020, the European Commission set a provisional date for completing a review of the proposed merger of the UK mobile operator O2 (owned by Telefonica), with the cable operator Virgin Media (part of Liberty Global). The merger would create a converged operator with 46m subscribers across mobile, broadband, and video.
Potential for uncertainty around oversight of the deal: The departure of the UK from the EU has raised doubts about whether the competence for the review of the merger should be with the European Commission (which normally oversees mergers of this size even when they are within a single EU country), or with the UK Communications and Markets Authority (CMA). Due to the arrangements agreed by the EU and the UK for the transition period, the merger had to be referred to the EC in the first instance, although it is possible that the EC will hand the case to the CMA.
Three possible scenarios: On 5 November 2020, the EC could clear the merger, if it believes it does not warrant an in-depth investigation. It could otherwise decide to carry out the in-depth investigation itself, or leave the merger to the CMA if any of the parties have made such a request. Telefonica and Liberty Global are expecting to be able to close the merger by mid-2021.
