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The
proposed merger is likely to lead to increased prices and/or a
reduction in the quality offered to UK consumers, CMA Chief
Executive Alex Chisholm told the European Commission's
Competition Commissioner Margrethe Vestager. (http://bit.ly/1SYPxji)
European Union antitrust regulators launched a full in-depth
investigation in October into Hutchison Whampoa's 10.3
billion-pound bid for British mobile operator O2 on Friday,
concerned that the deal may push up prices.
The potential deal would make Li Ka-shing's Hutchison, which
operates the Three UK mobile network, the top mobile operator in
Britain.
"It is clear that the remedies offered fall well short of what
would be required to meet the relevant legal standard, as
detailed in our case submissions," the CMA said, adding that the
only available option for the EU was a prohibition if the
suggested remedies are not enacted.
On Monday the CMA suggested that the companies divest either the
Three Mobile or O2 mobile network business completely or allow
for carve-outs from the divested business.
Spain's Telefonica said in March 2015 that it had finalised a
deal to sell its British mobile business O2 to Li Ka-shing's
Hutchison Whampoa.
(Reporting by Vidya L Nathan in Bengaluru; Editing by Gopakumar
Warrier)
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