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ARTICLE · 06 AUGUST 2024

Market Intelligence Thought Leadership Award Winner

Do Four-To-Three Mobile Mergers Harm Consumers?

Despite skepticism from competition authorities, studies show four-to-three mergers between mobile network operators have improved service quality without significantly raising prices. Each merger's impact varies by market and specific conditions, suggesting careful case-by-case assessment is necessary.

United KingdomMedia, Telecoms, IT, Entertainment

In the last decade, Competition Authorities have become sceptical about four-to-three mergers between mobile network operators. In this article, Jorge Padilla, Thilo Klein, Paul Reynolds and Martin Wickens1 evaluate studies on the effects of such mergers, which show they have led to a higher service quality without increasing prices. Therefore, there is no sound basis to presume such a merger will likely harm consumers. Instead, careful assessment of the likely effects on prices and service quality is needed to determine whether a particular merger will make the consumers worse or better off.

This article summarises a study commissioned by Vodafone UK Limited and Hutchison 3G UK Limited. The full study can be found in the latestedition of the European Competition Law Review here.

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