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Sky has threatened legal action if the competition watchdog approves a £15bn merger between Vodafone and Three next week.
The broadcaster and mobile provider has told the Competition and Markets Authority (CMA) that it will be “forced” to challenge the decision if the regulator approves the deal between the mobile giants in its current form. .
The merger with Three is a major test of strategy for Vodafone boss Margherita Della Valle as she tries to reduce her debts and streamline her operations.
Plans: Vodafone boss Margherita Della Valle
Earlier this month, the CMA said it could “allow the merger to go ahead” after Vodafone and Three’s owner, Hong Kong giant CK Hutchison, agreed to a series of commitments to ease concerns that the merger could lead to higher bills.
These included a commitment to cap its lowest-cost mobile plans at £10 for two years and invest in the rollout of 5G internet over eight years.
If the deal is approved, the combined entity will become the UK’s largest mobile network operator, overtaking Virgin Media O2 and BT’s EE.
But Sky said it was “evident” there were still “substantial concerns” around the deal.
James Robinson, of analysts Assembly Research, said: “It is difficult to say whether this is a genuine threat from Sky or simply a last-ditch attempt to influence the CMA.”
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