In the News Teaching Activity – the CMA has potentially approved a merger between Vodaphone and Three (Nov 2024)

The UK’s Competition and Markets Authority signalled potential approval for Vodafone and Three’s £15 billion merger, contingent on commitments to infrastructure investment and consumer protection.

The CMA views the merger as potentially beneficial for competition in the UK mobile market, provided Vodafone and Three follow through on certain conditions. Key economic arguments supporting the deal highlight its promise to enhance 5G coverage and long-term investment, addressing current network inadequacies noted by industry leaders. However, to counter concerns about potential price hikes, the CMA requires Vodafone and Three to freeze specific tariffs for three years and maintain fair pricing for Mobile Virtual Network Operators (MVNOs). The merger aligns with broader governmental goals to spur private investment, though the CMA’s approval will hinge on concrete measures that protect consumers and encourage market competitiveness.

Vodafone and Three merger could get green light, says UK's competition watchdog | Money News | Sky News

1. What is the role of the Competition and Markets Authority?

2. What type of integration is the proposed merger between Vodaphone and Three?

3. Discuss the potential benefits and costs of the proposed merger for consumers and the producers.