Sky fights to cease merger of cell phone giants Vodafone and Three

Sky has threatened legal action if the competition watchdog approves a £15billion merger between Vodafone and Three next week.

The broadcaster and mobile provider has told the Competition and Markets Authority (CMA) 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 big test of strategy for Vodafone boss Margherita Della Valle who is trying to reduce its debts and streamline operations.

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 tie-up could lead to higher bills.

Plans: Vodafone boss Margherita Della Valle

These included a pledge to cap their lowest-cost mobile plans at £10 for two years and invest in the roll-out of 5G internet over eight years.

If the deal is approved it will make the combined entity the UK’s largest mobile network operator, leapfrogging Virgin Media O2 and BT’s EE.

But Sky said it was ‘evident’ that there were still ‘substantial concerns’ around the deal.

James Robinson at analysts Assembly Research said: ‘Whether this is a genuine threat from Sky or just a last-ditch attempt at influencing the CMA is difficult to say.’