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European Regulators Block Hutchison Acquisition Of O2

European Regulators Block Hutchison Acquisition Of O2

Smartphones May 11,2016 0

The European Union's competition watchdog has blocked the takeover of mobile phone operator Telefonica U.K.'s O2 by Hutchison U.K. over concerns the merger would have stifled innovation in the mobile phone sector. The European autihorities had concerns that UK mobile customers would have had less choice and paid higher prices as a result of the takeover.

EU antitrust commissioner, Margrethe Vestager, said Wednesday the merger would have created "a market leader that would have had influence over the entire mobile network infrastructure in the U.K."

Vestager said the buyout would have resulted in higher prices and less choice for consumers.

Hutchison was offering about $15 billion for the British business of European mobile phone operator Telefonica.

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