Vodafone’s U.K. merger with Three gets conditional approval from CMA

The U.K.’s CMA said that the inquiry group found that Vodafone’s (VOD) merger with Three should be allowed to go ahead if both companies agree to certain legally binding commitments. Under these commitments, Vodafone and Three would: deliver their joint network plan, setting out the network upgrade, integration and improvements they will make to their combined network across the UK over the next 8 years cap selected mobile tariffs and data plans for 3 years – directly protecting affected customers from short-term price rises in the early years of the network plan offer pre-set prices and contract terms for wholesale services for 3 years to ensure that virtual network providers have competitive terms and conditions. The network improvement commitment would be overseen by both Ofcom and the CMA, with the merged company needing to publish an annual report setting out its progress. The CMA will monitor and enforce the protections relating to consumer tariffs and wholesale terms. If Vodafone and Three agree to these commitments, the CMA will then work to implement them, otherwise the CMA will block the deal.