Preiskel & CoPreiskel & Co
Preiskel & Co
  • Home
  • About Us
    • Diversity, Social Responsibility, and Pro Bono
  • Services
    • Corporate
    • Commercial
    • Regulatory
    • Competition & Antitrust
    • Data Protection, Privacy, and Retention
    • Intellectual Property
    • Dispute Resolution
    • Employment
  • Sectors
    • Telecommunications
    • IT, Technology, & Internet
    • Media and Broadcasting
    • Websites, Blogging, & Social Media
    • Film & Television
    • Gambling & Online Gaming
    • Leisure & Retail
    • Energy & Minerals
    • Cryptocurrency & Blockchain
    • Creative Industries
  • People
    • Daniel Preiskel
    • Ronnie Preiskel
    • Tim Cowen
    • Jose Saras
    • Robert Dougans
    • Tina Cowen
    • D A T Green
    • Karthyaeni Vittala
    • Mor Swiel
    • Ilanit Appelfeld
    • Charles Soden-Bird
    • Nick Bromfield
    • Stephen Dnes
    • Daniel Oakland
    • Robert Harvey
    • Martina Raciti
    • Matthew Fox
    • Joanna Coombs-Huang
    • Xavier Prida
    • Mark Clough
    • Stewart White
    • Hannah Leader
    • Peter Dally
    • Antony Corel
    • Sue Warwick
    • Galyna Carey
    • Stephen Hornsby
    • Claire Barraclough
  • International
  • Blog
  • News
    • Publications
  • Contact
Menu back  

CMA publishes Issues Statement in Liberty Global/Telefónica merger inquiry

January 22, 2021By Preiskel & Co

On 21 January 2021, the CMA published its Issues Statement in the phase 2 review of a proposed joint venture between Liberty Global plc and Telefónica S.A. which would see their UK mobile businesses Virgin Media/Virgin Mobile and O2 merged.

The CMA has jurisdiction to review the proposed joint venture following the European Commission’s decision in November to refer the case to the UK under article 9(3)(b) of the EC Merger Regulation. The CMA opened a Phase 1 investigation, and referred the joint venture for Phase 2 review on 22 December 2020.

The Issues Statement sets out the scope of the CMA’s inquiry and their initial theories on how the proposed joint venture could adversely affect competition.

At Phase 2, the CMA is charged with considering whether, on the balance of probabilities, there is a “relevant merger situation”, and whether that relevant merger situation can be expected to result in a substantial lessening of competition, or “SLC” within and market or markets in the UK for goods and services (section 36(1) Enterprise Act 2002).

The Issues Statement indicates that the CMA has particular concerns about the following vertical relationships between the parties:

  • O2 supply of wholesale mobile services to companies running mobile virtual networks or “MVNOs”; and
  • Virgin’s supply of wholesale leased lines to mobile network operators or “MNOs”.

The theories of harm set out in the Issues Statement indicate that the CMA is concerned about input foreclosure in relation to the supply of wholesale mobile services to MVNOs, and input foreclosure in relation to the supply of wholesale leased lines to MNOs.

The case looks set to revisit, refine, and develop some of the most significant questions in the application of merger law to mobile communications markets, building on the significant precedents in BT/EE and O2/Three. There is much to be debated in how best to achieve pro-competitive outcomes as the shift to 5G gathers pace, and now is the time for interested parties to make their views known to have maximum effect.

Interested parties can make submissions on the Issues Statement to the CMA until a 5pm deadline on 4 February 2021.

More details on the CMA’s inquiry can be found on the case page.

Please contact Tim Cowen if you have any questions relating to the above.

Leave Comment

Cancel reply

Your email address will not be published. Required fields are marked *

clear formSubmit

Latest blog posts
  • Council of Europe publishes guidelines on facial recognition
    February 26, 2021
  • Epic Games files antitrust complaint with European Commission
    February 22, 2021
  • Will the UK keep the VABER?
    February 16, 2021
  • CMA publishes Issues Statement in Liberty Global/Telefónica merger inquiry
    January 22, 2021
  • Epic Games, creator of Fortnite, launches claims against Google and Apple in Competition Appeal Tribunal
    January 21, 2021
  • European Commission proposal for Digital Services Act published
    December 15, 2020
  • Facebook faces antitrust lawsuits in the US
    December 11, 2020
  • CMA issues advice for Government on regulatory regime for tech giants
    December 10, 2020
  • New Telecoms Security Law Laid before Parliament for tougher Rules and Fines for Telecoms Companies
    November 25, 2020
  • New Ofcom Consultation on Copper Retirement
    November 23, 2020
  • European Commission releases draft new Standard Contractual Clauses
    November 19, 2020
  • National Security and Investment Bill published
    November 16, 2020
The Preiskel Blog
  • Council of Europe publishes guidelines on facial recognition 26 Feb 2021
  • Epic Games files antitrust complaint with European Commission 22 Feb 2021
  • Will the UK keep the VABER? 16 Feb 2021
  • CMA publishes Issues Statement in Liberty Global/Telefónica merger inquiry 22 Jan 2021
Preiskel news
  • Tim Cowen to speak at Mediaspace panel on 18 March
  • Tim Cowen gives exclusive interview to Mediaspace
  • English Speaking Union (ESU) educational charity appoints Danny Preiskel to its Board of Trustees
  • Law360 reports on Preiskel & Co dispute resolution team case Dynasty Company for Oil and Gas Trading v the Kurdistan Regional Government of Iraq and Dr Ashti Hawrami
Preiskel tweets
  • Chair, Antitrust Practice, @TC_4KBW to speak at Mediaspace (@wr_mediabrowser) panel on 18 March. Find out more here… https://t.co/MyxH8lidZg10 hours ago
  • Chair of our antitrust practice, @TC_4KBW has given an exclusive interview to Mediaspace @wr_mediabrowser Find out… https://t.co/6Ioii4cf9tyesterday
  • The @coe has published guidelines the automatic processing of personal data for facial recognition. Find out more h… https://t.co/BMpWNttAbA6 days ago
Preiskel & Co LLP
4 King's Bench Walk,
Temple,
London
EC4Y 7DL
United Kingdom

Tel:
+44 20 7332 5640
Email:
info@preiskel.com

Find us on:

TwitterLinkedinMail
© Preiskel & Co LLP 2021 | Site map | Legal notices | Privacy | Cookie Policy