Clifford Chance

CMA clears Vodafone/Three UK merger: a landmark decision – and its implications

6 December 2024

The UK Competition and Markets Authority (CMA) has cleared the "four-to-three" mobile telecoms merger between Vodafone and Three. It did so on the basis of behavioural commitments by the merging parties to invest around £11 billion in their telecoms infrastructure, and to cap their prices temporarily, pending the realisation of the claimed pro-competitive effects of their investments.

The decision signals greater openness by the CMA to behavioural remedies instead of only structural divestments, as a basis for clearing mergers that raise some competition concerns. This may well create new business opportunities for M&A. It remains to be seen whether it will serve as an important precedent for consolidation in other sectors and countries, with the European Commission actively considering whether to soften competition policy for mergers.

Download PDF