Press Release: Mergers: Commission prohibits Hutchison’s proposed acquisition of Telefónica UK

On 11 May 2016, the European Commission blocked the proposed acquisition of O2 by Hutchison under the EU Merger Regulation. It had strong concerns that UK mobile customers would have had less choice and paid higher prices as a result of the takeover, and that the deal would have harmed innovation in the mobile sector.

In response CK Hutchison said it was considering a legal challenge to the decision.

The UK's communications regulator Ofcom had lobbied against allowing the merger arguing that allowing the number of players in the market to fall from four to three would inevitably lead to higher prices, poorer service or both.

• Primary Source

European Commission: DG Communication: RAPID: MEMO/16/1705, 11.05.16: Mergers: Commission prohibits Hutchison's proposed acquisition of Telefonica UK – Factsheet http://europa.eu/rapid/press-release_MEMO-16-1705_en.htm

European Commission: DG Communication: RAPID: STATEMENT/16/1713, 11.05.16: Statement by Commissioner Vestager on competition decision to prohibit Hutchison's proposed acquisition of Telefónica UK http://europa.eu/rapid/press-release_STATEMENT-16-1713_en.htm

EurActiv, 11.05.16: EU blocks Hutchison’s deal to buy Telefonica’s O2 UK http://www.euractiv.com/section/digital/news/eu-blocks-hutchisons-deal-to-buy-telefonicas-o2-uk/

EUObserver, 11.05.16: EU stops €13bn merger of telecom firms Three and O2 https://euobserver.com/economic/133404

Politico, 11.05.16: Veto of UK mobile merger sends chill across Europe http://www.politico.eu/article/veto-of-uk-mobile-merger-sends-chill-across-europe-commission-three-02/

BBC News, 11.05.16: EU blocks Three's takeover of O2 http://www.bbc.co.uk/news/business-36266924

The Guardian, 11.05.16: Three's takeover of O2 blocked by Brussels on competition concerns https://www.theguardian.com/business/2016/may/11/three-takeover-of-o2-blocked-by-european-commission-on-competition-concerns

Deutsche Welle, 11.05.16: Brussels shoots down O2-Hutchison merger http://dw.com/p/1IlbO

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