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UK: Virgin slams CMA decision to approve BT, EE deal

By  |  November 25, 2015

Virgin Media has accused the Competition and Markets Authority (CMA) of conducting an ‘extraordinary flawed analysis’ before approving the takeover of EE by BT, reports The Telegraph.

In a new submission to the competition watchdog, Virgin claims that the competition watchdog’s analysis ‘materially understated’ the threat to competition and consumers when it gave provisional approval to the deal without any restrictions protecting virtual networks. Virgin runs MVNO Virgin Mobile used wholesale capacity from EE.

Virgin believes the CMA has failed to properly consider the possibility of wholesale price increases after BT takes control of EE, suggesting that it could raise prices for Virgin Mobile to weaken its market position and try and get customers to take bundled services from BT and EE.

Virgin said it was ‘extraordinary’ that the CMA believes that wholesale price increases would not significantly harm retail market competition.

Full content: Invezz

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