mobileu.co.uk

OFT wants control Orange and T-Mobile investigation

The Office and Fair Trading (OFT) has requested that it takes control of an investigation into the merger between T-Mobile and Orange.

The news has of course been welcomed by the two firms’ competitors as it suggests a quick decision on the merger is extremely unlikely.

The OFT has asked the European Commission to hand the UK parts of the investigation to the UK competition authorities as any deal that occurs would have immediate repercussions on the UK mobile industry. The OFT also claims that a deal would have an impact on the way in which UK mobile firms use their new technologies.

As a result of these concerns, the OFT has written to the EU to demonstrate that it is better equipped to deal with these UK-centric issues in light of its close knowledge of the marketplace.

One of the main arguments against the deal comes from 3UK who fears that the merged firm would have little reason to continue the shared network agreement that T-Mobile and 3UK currently enjoy. As a result, the merger could spell the end of the road for 3UK, thus adding to fears that the merger could reduce competition in the UK marketplace.