The UK Competition and Markets Authority (CMA) has provisionally cleared the acquisition of EE by BT. After examining different markets - including the supply of retail mobile, wholesale mobile, mobile backhaul, wholesale broadband and retail fixed broadband services - the CMA has provisionally concluded that the merger is not expected to result in a substantial lessening of competition in any market in the UK.
John Wotton, Inquiry Chair, said that the UK retail mobile market is competitive and as BT is a smaller mobile operator, the merger is unlikely to have a significant effect on competition. In addition, the merger is unlikely to have a significant effect on competition in the retail broadband market, where EE is only a minor player.
The CMA also examined ways in which the merged group might try to disadvantage rivals which it supplied with services. It has provisionally concluded that they would unlikely have both the ability and incentive to do so, and in others that the effects of their attempting to do so would be limited. The CMA has also extended the deadline for its final report by eight weeks to 18 January 2016. Responses to the provisional findings should be submitted by 19 November.
BT said that it welcomed the CMA's decision, unconditionally without remedies. BT CEO Gavin Patterson insisted that a combined BT/EE would be good for the UK, providing investment and further innovation for consumers and businesses.
