The Competition and Markets Authority (CMA) has started a phase one investigation into Vodafone’s joint venture agreement with Three.

A merger between the pair would combine the companies’ telecommunications operations under one single network provider.

Vodafone UK, owned by the Vodafone Group, and Three UK, which is owned by CK Hutchison Holdings Limited, constitute two of the four major mobile network operators in the UK with the other two including BT/EE and Virgin Media O2.

Having now received the required pre-notification evidence and information from both Vodafone UK and Three UK, as well as early views from stakeholders, the CMA has today confirmed it is starting its formal investigation into the deal.

“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 one investigation, before publishing our findings and any next steps.”

The competition regulator added that its review is designed to identify whether the deal may lead to a “substantial lessening of competition”, and if this is the case, whether a more in-depth phase two investigation into the deal is required.

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