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Vodafone Cops A Competition Problem

The Australian Competition and Consumer Commission has tossed a potential spanner into the works surrounding the proposed merger of operations by mobile phone operators Vodafone Australia and Hutchison’s “Three”.

The Australian Competition and Consumer Commission has tossed a potential spanner into the works surrounding the proposed merger of operations by mobile phone operators Vodafone Australia and Hutchison’s “Three”.

The ACCC has issued a “statement of issues” and called for comment on “certain competition issues”.

Under the deal announced in February (CDN, Feb. 10), Vodafone Australia and Hutchinson will each hold a 50 percent stake in a new entity dubbed VHA, operating under the Vodafone brand.

Among a lengthy list of issues, the commission says it is concerned that the removal of Hutchison as a “vigorous and effective competitor” will lead to increased prices for retail mobile telephony and mobile broadband services.

The statement of issues is available at www.accc.gov.au/mergersregister.

Submissions are due by April 17.

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