UK watchdog calls for Orange merger investigation

 

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By Jennifer Scott

Posted on 3 Feb 2010 at 16:51

The Office of Fair Trading (OFT) has requested permission from the EU to investigate the merger between T-Mobile and Orange, citing competition concerns.

The proposed merger would make Orange the UK's largest mobile provider, provoking concern at the OFT. "[Our] initial view, following consultation, is that the joint venture threatens significantly to affect competition in mobile telecommunications in the UK,” the OFT says in a statement.

We strongly believe that the proposed merger is good for Britain and will continue to work closely with all interested parties

“If the request [of a UK investigation] is granted, the OFT intends to examine the proposed joint venture with a view to deciding whether it should be referred to the Competition Commission for an in-depth investigation,” it adds.

This will be music to the ears of O2 and 3, which have both called for UK authorities to examine the merger.

The Communications Consumer Panel is also insistent that a UK investigation should take place, and has already written to the European Competition Commissioner to request it.

However, Orange had denied that the merger is a danger to competition. "We are in close contact with all of the authorities involved, including the OFT and OFCOM. We strongly believe that the proposed merger is good for Britain and will continue to work closely with all interested parties,” the company says.