CMA provisionally clears Virgin Media/O2 joint venture

 

The CMA has provisionally cleared the proposed joint venture between Liberty Global plc and Telefónica SA to merge their UK operating businesses Virgin Media/Virgin Mobile and O2.

The CMA has concluded that the JV will not give rise to a substantial lessening of competition, including in relation to possible vertical effects.  It found in relation to wholesale mobile services to mobile virtual network operators (MVNOs) in the UK that there are a number of other companies that provide such services.

The CMA has found that the merged business would have neither the ability nor the incentive to engage in total or partial foreclosure. Given Virgin Mobile’s modest market share, the CMA ruled out concerns in retail markets.

Reportedly, there was a high level of cooperation between the CMA and the European Commission in this case notwithstanding Brexit.

The CMA invites comments on its provisional findings by 5 May 2021. The CMA must conclude its Phase 2 investigation by 27 May 2021

https://www.gov.uk/government/news/cma-provisionally-clears-merger-of-virgin-and-o2