The EU has blocked the CK Hutchison — owner of Three UK — bid to take over Telefonica's O2 operations in the UK due to concerns that the merger would limit customer choice and increase prices. As reported by the BBC, the deal was to be worth around £10.3 billion, reducing the number of major operators to just three — EE, Three and Vodafone.
CK Hutchison has stated the company is considering a legal challenge to the decision. Europe's competition commissioner, Margrethe Vestager, explained the decision made by the EU:
"The goal of EU merger control is to ensure that tie-ups do not weaken competition at the expense of consumers and businesses. We want the mobile telecoms sector to be competitive so that consumers can enjoy innovative mobile services at fair prices and high network quality."
The EU found that concessions offered by the Hong Kong company, which included a five-year price freeze and investment worth billions of pounds, were insufficient. Interestingly, the EU has issues with two companies merging together within the industry but had absolutely no issue at all with EE having exclusive access to 4G when the company launched in the UK back in 2012.
Reader comments
EU blocks Three's £10 billion takeover bid for Telefonica's O2
Competition is good. Keep it that way.
Typed using my QNX powered BlackBerry Classic running 10.3.2.2876 on WINDmobile HSPA+
Sad day for the UK. Three are one of the best value providers here. Massive data allowances, fast internet, unlocked phones out of the box, Three at home service that makes calling from 10 countries in the world free, yes free. Includes up to 25gig of data (on the unlimited data plan) . Only one problem, the service is either brilliant or non. This move would have made the best network in England even better. In an industry that has already peaked, and choosing a phone on any network is probably down to how good the signal is in your home or office, this is a big shame.
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How comes, BT taken over of EE was blocked. Surely this is discriminatory, if Three was British company this wouldn't have happened at all.
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America would allow that takeover.
De - Governor
Previously, BT was not a mobile network provider.
Before BT purchased EE, there were 4 mobile networks.
After BT purchased EE, there remain 4 mobile networks.
In Brussels they have, rather belatedly, realised that when mobile networks merge and the numbers drop from 4 to 3, there is less choice and/or competition, and prices rise.
If the EuroCrats had realised that a few years ago they might have stopped the Orange and T-Mobile merger to form EE.
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Why was it ok for BT to spend x amount of £ billions for EE? But this isn't allowed. Somethings not right here
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BT weren't a real mobile player, more landline/broadband, so the balance of networks stayed the same, as opposed to the orange/ T-Mobile merger which then became EE in previous years, and the other countries within the eu that now due to other merger and buyouts have only three networks........the plot thickens...
Now if they should step on Google toes and order them to make available Google Android Apps and services in other platforms AKA BB10, Windows, etc. To avoid loosing great OS platforms due to lack of APP compatibility, this will keep more options and better prices on mobile platforms.
Just dreaming
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If we want to get on Google and apple toes we need more open source patents before they can privately patent the ideas. Like apple and their 'touch capacitive keyboard' we in this community should have seen such a dirty trick coming after the Passport came out and jumped on a computer version in open source so they can't steal anything
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Must admit, abroad at the moment, left my contact Vodafone sim in the UK, topped up my 3 payg sim with an add on put it in my z10 work great calls, data for the month. Not like Vodafone which they charge daily
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Not if your in EU Vodafone Now free Any Where in EU (no daily Charge)
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Very good rationale. Keep up the good work for public well-being.
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It's not.
Half a year ago BT bought EE and it was ok
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well, that's short sighted step...
there's a plenty of virtual operators. I, as three user, would be more than happy to boost coverage while merging O2 and Three.
why EE (Orange and T-mobile) is OK, and Three + O2 not anymore?
rubbish
And it was ok for BT to buy EE
Posted from my passport not 'running the google'
Yup
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Because Vodafone will be alone. ;)
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Europe hasn't been relevant in decades.
Sent from my battered and bruised but still kicking (just barely) Z30.
Says who...?
:-D
• There's a Crack in the Berry right now... •
Dumb, da dumb dumb dummmmmb
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message was meant for 1khalid
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I hope that a future innovation in smartphones could eliminate the service provider as a middle agent, or somehow assure that their number is many.
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Policy making men that is!
Mac's Z10 or PlayBook
Sounds like men in the EU "like" (are in bed with) EE?
Mac's Z10 or PlayBook
Great reporting Rich. Interesting sign of the times in EU land.
Mac's Z10 or PlayBook
Just take a look at Canada to understand why this ruling is so important for the UK.
Ha! :-D
• There's a Crack in the Berry right now... •
Exactly, Canada is controlled by Bell Rogers and telus. Bell just bought mts last weak. I applaud the Eu for there decision.
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I'm typing this from my BlackBerry PRIV on the Three network, does that help the relevance?
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I already alluded to that. Read my comment again.
Straight from my BlackBerry Passport smartphone running OS10... Stay away from Junkroid on Steroids!!
At the bottom it said that EE had exclusive access to 4g networks. I know I could read the link and see when that changed but id rather ask you. Do all carriers have 4g now?
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Yes. All real ones, many virtual.
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The article's relevance to BlackBerry is so tight. Perhaps because some subscribers use BlackBerry? Slow news day......zzzzzzzzz
Straight from my BlackBerry Passport smartphone running OS10... Stay away from Junkroid on Steroids!!
UK version of Ma Bell.
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Good one. More competition the better.
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