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UK's CMA Launches Investigation into Vodafone-Three Merger

The proposed merger, which would create the UK's largest mobile network, faces scrutiny over potential impact on competition and consumer prices.

  • UK's Competition and Markets Authority (CMA) has launched a formal investigation into the proposed merger between Vodafone and Three, which would reduce the number of major mobile networks in the UK from four to three.
  • The merger, announced in June, would result in Vodafone owning 51% of the combined business and Three owning 49%, creating the UK's largest mobile network with about 27 million customers.
  • Vodafone and Three have pledged to invest £11 billion in the UK's 5G infrastructure over the next decade, claiming the merger will enhance competition and speed up the rollout of 5G.
  • However, the Unite union has warned that the merger could lead to increased prices for consumers, with estimates suggesting bills could rise by as much as £300 per year.
  • The CMA's initial probe will take 40 days, during which it will assess whether the merger could lead to a 'substantial lessening of competition.' If this is found, a more in-depth investigation may be launched.
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