Vodafone-Three Merger: CMA Approval Marks Shift in UK Competition Approach
Vodafone andThree have completed their £15bn merger after CMA approval, reducing the UK's mobile market from four to three major operators despite competition concerns
• Vodafone and Three have officially merged, creating the UK’s largest mobile network.
• The £15bn deal gives Vodafone a 51% stake and CK Hutchison (Three’s parent company) 49%.
• The Competition and Markets Authority (CMA) cleared the merger after months of review, following commitments to invest in 5G infrastructure.
• The decision contrasts 2016 European Commission’s block of Hutchison’s proposed acquisition of O2, citing pricing and competition concerns.
• The decision leaves the UK with three major mobile operators: EE, Virgin Media O2, and VodafoneThree.
• CMA acknowledged competition risks but concluded that the parties’ investment commitments would deliver long-term benefits through improved connectivity and network development.
• CMA’s approval suggests a more flexible approach to competition, giving greater weight to long-term network investment and 5G rollout alongside short-term pricing concerns.
• Reflects how regulators are increasingly balancing competition enforcement with wider economic aims, particularly connectivity and digital infrastructure.
• Commentators have suggested this outcome reflects a broader policy shift, viewing telecoms as part of the UK’s infrastructure, not just a commercial market.
• For law graduates, the case is a strong example of merger control shaped by policy context, demonstrating a more outcome-focused and sector-specific approach to competition law.
1.Competition and Markets Authority, ‘CMA clears Vodafone/Three merger, subject to legally binding commitments’ (5 December 2024) https://www.gov.uk/government/news/cma-clears-vodafone-three-merger-subject-to-legally-binding-commitments accessed 1 June
2.European Commission, ‘Mergers: Commission prohibits Hutchison’s proposed acquisition of Telefonica UK’ (11 May 2016) https://ec.europa.eu/commission/presscorner/detail/en/ip_16_1704 accessed 1 June
3.Macfarlanes LLP, ‘Three is the Magic Number: CMA Approves Vodafone/Three Merger’ (5 December 2024) https://www.macfarlanes.com/what-we-think/102eli5/three-is-the-magic-number-cma-approves-vodafone-three-merger-102jqgw/ accessed 2 June
4.Reuters, ‘Vodafone-Three Merger approval marks UK antitrust shift’ (5 December 2024) https://www.reuters.com/business/media-telecom/vodafone-three-merger-approval-marks-uk-antitrust-shift-2024-12-05/ accessed 2 June