The UK’s competition authority dismissed concerns that a merger of mobile operator O2 and fixed operator Virgin Media would have negative implications on wholesale services, provisionally clearing the proposed deal without conditions, reported the BBC.
In a statement, the Competition and Markets Authority (CMA) said its investigation concluded the combination of the businesses was unlikely to have a negative effect on either fixed or mobile wholesale markets.
Both Virgin and O2 provide some wholesale services to other mobile network operators in the UK, as well as retail services to consumers. The CMA noted that its investigation focused on whether the merger could lead to reduced competition in wholesale services as part of the review.
Virgin provides wholesale leased lines to mobile telecommunications companies, such as Vodafone and Three, which they use to connect key parts of their network. Similarly, O2 offers mobile operators such as Sky and Lycamobile, which do not have their own mobile network, use of the O2 network to provide their customers with mobile phone services.
The CMA stated that it was initially concerned that, following the merger, Virgin and O2 could raise prices or reduce the quality of these wholesale services. Having examined the evidence, the CMA has now provisionally concluded that the proposed merger is unlikely to lead to any substantial lessening of competition in relation to the supply of wholesale services.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Croatian Supermarket Chain Tommy Cleared to Acquire Brodokomerc Nova
Oct 13, 2024 by
CPI
X and Unilever Settle Antitrust Dispute, Continuing Partnership
Oct 13, 2024 by
CPI
Federal Judge Allows Antitrust Claims Against GoDaddy to Proceed
Oct 13, 2024 by
CPI
Court Ruling Opens Door for Microsoft to Sell Xbox Games on Android Without Google’s Cut
Oct 13, 2024 by
CPI
Realtors Appeal to Supreme Court Over DOJ’s Investigation into Antitrust Violations
Oct 13, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh