EU anti-trust watchdogs have blocked the tie-up between 02 and Three, after fears that it would lead to higher prices and reduced options for consumers.
Telefonica was planning to sell the O2 network to CK Hutchison, the owner of Three, in a deal worth £10.3 billion. It would have reduced Britain’s major phone networks to just three, prompting the European Commission to veto the deal.
European Competition Commissioner Margrethe Vestager said in a statement:
“The goal of EU merger control is to ensure that tie-ups do not weaken competition at the expense of consumers and businesses.”
“We want the mobile telecoms sector to be competitive, so that consumers can enjoy innovative mobile services at fair prices and high network quality.”
The decision was made despite concessions offered by Hutchinson, including a five year price freeze.
11/05/2016
