Recently on 11th of May, the European Commission’s competition commissioner Margrethe Vestager has barred UK’s “Three” from acquiring O2 which is known to be a popular network with consumers and has the advantage of a 4G service in Europe.
Margrethe Vestager has explained why the European Commission decided to stop this acquisition over O2, there is a solid concern that British mobile clients would have less decision and would need to pay higher costs as an aftereffect of the takeover.
Furthermore, the arrangement would have likewise negatively affected the nature of administration for customers, she also mentioned in a statement saying “We had strong concerns that consumers would have had less choice finding a mobile package that suits their needs and paid more than without the deal, it would also have hampered innovation and the development of network infrastructure in the UK, which is a serious concern especially for fast moving markets. The remedies offered by Hutchison were not sufficient to prevent this.”
However, CK Hutchison Holdings the proprietor of Three kept £10.25 billion ($14.78 billion) to pay for O2. The arrangement would have left Britain’s telecom business sector with just three organizations: Three-O2, EE, and Vodafone.
On the other hand, it needs to be mentioned that recently the European Commission has fined 3 billion euros to the search giant Google over Antitrust issues.
Prior this year, the UK watchdog Competitions and Markets Authority (CMA) encouraged European controllers to adequately obstruct the merger.
A study by British telecoms controller Ofcom found that costs are 10-20% higher in business sectors with three administrators.