The British competition authority CMA has issued an ultimatum to Vodafone to present the benefits of the planned merger with mobile operator Three as compared to potential competitive disadvantages. This merger, which is supposed to make Vodafone more profitable in the UK, is viewed critically by the authority. There are concerns that the consolidation of mobile services could lead to higher prices and lower quality for customers. Vodafone and Three are now under pressure to present convincing arguments for the merger within five days to avoid a protracted antitrust procedure and potentially a ban on the merger.

The planned merger would be a significant step for Vodafone to acquire a 51 percent majority in a joint venture valued at about 18 billion pounds. With just under 28 million customers, Vodafone/Three would become the market leader in the UK and compete directly with other major mobile operators. This strategic realignment comes at a time when Vodafone is also making international changes, such as selling its business in Italy.

The CMA has so far not found sufficient evidence to support the claims by Vodafone and Three that the merger would be good for competition and investment. The authority's initial assessment has raised serious concerns that could now justify an in-depth investigation. In addition to economic concerns, there are also political fears regarding national security, particularly in terms of the transfer of information to China through the merger with the Hutchison subsidiary.

Vodafone argues that the merger would enable significant investments in the UK mobile network, potentially propelling the country to a global lead in 5G technology. However, the company faces the challenge of convincingly demonstrating these benefits within the set deadline to alleviate competition authority concerns and the risks of a potential prohibition of the merger.