£10bn O2 deal in UK blocked by EU

The EU blocked Hutchison’s bid to create the UK’s biggest mobile carrier, the latest setback to consolidation that telecommunications operators say they need to funnel money into new networks.

Hutchison’s plan to buy Telefonica’s O2 UK mobile-phone business for as much as £10.25 billion (€9bn) and merge it with its Three unit risked raising prices and shrinking choice for customers, the Commission said.

The companies’ pledges to increase investment and freeze prices didn’t do enough to appease antitrust concerns.