Brussels sets scope of investigation into proposed £10.5bn merger of O2 and Three

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Brussels has set out the areas it will investigate as part of its probe into a merger of mobile networks O2 and Three.

The European Commission is in the process of deciding whether the proposed £10.5billion takeover of O2 by Three’s owner CK Hutchison should go ahead.

The antitrust watchdog is considering whether the deal will reduce competition for customers and third-party mobile providers that depend on the two networks.

Mega merger: The European Commission is in the process of deciding whether the proposed £10.5bn takeover of O2 by Three’s owner CK Hutchison should go ahead

It will look at four key areas: retail competition, sales channels, infrastructure and wholesale services provision.

It will consider concerns about the potential for collusion as well wholesale costs, handset sales and network ownership.

The Commission has sent out a questionnaire to companies in the sector, asking for comments.

The survey includes questions on Tesco Mobile, half-owned by O2, and the takeover of EE by BT. It asks for responses on the expected impact on the wholesale market.