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Uswitch comments on EC blocking Three & O2 merger

Commenting on the European Commission prohibiting the proposed Three and O2 merger, Richard Neudegg, Head of Regulation at Uswitch.com, says: “The EC has spoken and it’s a win for those who have fought to maintain a healthy and competitive UK mobile market – including the CMA and Ofcom.

“The real risk of rising mobile prices and less innovation in the UK market are the main factors in today’s decision, as are fears around the competitive advantage that a combined Three/O2 would have gained from inheriting network sharing arrangements that cover all mobile networks in the UK.

“The EC has called out the idea that beefed-up “virtual” networks were enough of a remedy to solve the competition concerns around this deal. Constraints by the networks on MVNOs are already making it tough for them to compete on mobile data and 4G offerings.

“If this merger had been given the green light, there would have been a real risk of stifling innovation, and the incentive for networks to undercut each other could have been severely diminished. The EC’s move to block the merger supports that school of thought.

“Fostering healthy competition in the UK mobile market – where prices are among the lowest in the EU – is vital to ensure consumers get good deals. That has been maintained today.”

Find out how you could save over £1,000 a year with Uswitchhere.

FOR MORE INFORMATION

Lucy Smith

Phone: 020 7148 4663

Email: lucy.smith@uswitch.com

Twitter: @uswitchPR

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