Vodafone-Three merger faces competition probe

The proposed merger between Vodafone and Three is to be investigated by the UK's competition watchdog.

The Competition and Markets Authority (CMA) will look into whether the deal could harm consumers by leading to reduced choice or higher prices.

The combined group would be the UK's biggest mobile network with about 27 million customers.

Vodafone and Three have been approached for comment.

The UK currently has four major mobile operators - Vodafone, Three, EE (which is part of BT), and Virgin Media O2.

Three general counsel Stephen Lerner had previously told the Business and Trade Committee that there were "no merger related price rises" in the firms' joint business plan, and he was confident the CMA would approve the deal.

The firms have said the deal will lead to £6bn of investment in its first five years, and £11bn in total.

The CMA has asked third parties - such as other network operators - to submit their views on the planned merger, and how it could affect competition.

"This deal would bring together two of the major players in the UK telecommunications market, which is critical to millions of everyday customers, businesses and the wider economy," said CMA chief executive Sarah Cardell.

"The CMA will assess how this tie-up between rival networks could impact competition before deciding next steps.

"We now have 40 working days to complete this formal Phase 1 investigation, before publishing our findings and any next steps."