4/11/2016 2:49:40 PM
‘Serious concerns’: CMA’s EC plea over Three/O2 deal
UK regulator, the Competition and Markets Authority CMA has expressed ‘serious concerns’ regarding the deal for Three’s owners CK Hutchison to buy O2 from Telefonica.
The watchdog used a strongly worded letter to the European Commission to argue that the remedies put forward by the owners of the Three Group are ‘materially deficient’. The CMA made the point that the measures did not facilitate the creation of a fourth mobile network to adequately compete and that in the absence of a fourth player competition would suffer significantly.
Remedies need to please
The remedies put forward by CK Hutchison have largely involved a number of MVNOs taking up portions of spectrum from the network. Tesco Mobile, Sky and Virgin Media have all been put forward as potential buyers.
However, these remedies have come under fire from a number of the industries smaller players. Phone Co-op CEO Vivian Woodall told Mobile that the proposed remedies could see a situation arise that would see Three buy back the spectrum because it was not financially viable to use it.