Virgin Media O2’s owners are facing the possible collapse of their £2 billion deal to acquire Netomnia, YouFibre and brsk. The Competition and Markets Authority has raised serious concerns about the takeover, and its latest document names blocking it completely as the only remedy currently on the table.
The deal isn’t officially dead. The CMA’s findings are still provisional, with a final decision due by 15 December. However, the companies behind the takeover have not proposed any changes that might answer its concerns, leaving them with an increasingly difficult job if they want to keep it alive.
Nothing changes immediately for anyone using Virgin Media, YouFibre or brsk. Your package, price, connection and customer support remain exactly where they are. The deal had not been completed, so there is no customer move to reverse and nothing you need to do.
image Credit: Virgin Media O2
Virgin Media O2’s gorgeous head offices in Reading
Why the CMA thinks households could lose out
The CMA sees another side to it. Netomnia and nexfibre currently provide separate networks, while YouFibre, brsk and Virgin Media compete for households. Bringing them together could remove one of those rivals, particularly across the Midlands and northern England. The regulator believes that could eventually mean less choice, higher prices or poorer service.
The CMA sees another side to it. Netomnia and nexfibre currently provide separate networks, while YouFibre, brsk and Virgin Media compete for households. Bringing them together could remove one of those rivals, particularly across the Midlands and northern England. The regulator believes that could eventually mean less choice, higher prices or poorer service.
Much of the argument concerns wholesale broadband: the prices and conditions offered behind the scenes to companies wanting to sell packages over somebody else’s network. That sounds remote from your monthly bill, but it isn’t. The CMA found that better wholesale competition commonly produces cheaper packages and better service for the people actually using them.
