O2 and Three's £10.25bn merger facing EU inquiry

The planned £10.25bn merger of mobile networks O2 and Three is facing a bump in the road after EU competition regulators raised concerns the deal could lead to "higher prices, less choice and reduced innovation" for customers.

The merger, which was confirmed in March this year, would create a business with 31 million customers and a bigger market share than that of BT/EE, Sky News reports.

The European Commission will now investigate the ramifications for consumers, a move that comes after the UK's Competition and Markets Authority (CMA) provisionally cleared the tie-up between BT and EE.

The Commission's regulators have until March next year to complete the investigation.

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