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UK: Blocked O3 merger spurs legal action

By  |  July 31, 2016

Hutchison confirmed on July 29, that it has lodged an appeal at the European General Court after EU antitrust regulators refused to approve the merger in May, arguing that the deal would have meant higher prices and less choice for UK consumers.

However, even if the complaint is victorious, it is not thought that the deal to acquire O2, owned by Spain’s Telefonica, will be revived, but Hutchison could push for compensation or use a decision in its favor to help smooth over future deals on the continent.

The move to block the deal signalled a stricter approach by the EC toward mergers in the region that are deemed to harm competition.

UK regulator Ofcom agreed with the EC’s decision saying, “Three and O2 are important and effective competitors in the UK, helping to deliver innovation, investment and competitive prices over many years.”

Full Content: Belfast Telegraph

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