Regulatory Watch – November 2024

Vodafone – Three merger receives provisional approval

The UK’s Competition and Markets Authority (CMA) has suggested that the proposed merger between Vodafone and Three could be ‘pro-competitive for the UK mobile sector’ if a package of commitments are agreed. The remedies include substantial network investments over an eight year period, maintaining existing tariffs for three years and provision of competitive, pre-agreed pricing contracts for MVNOs. Approval would represent a substantial change to the UK market, reducing major players from four to three and creating the largest network operator. BT and Sky Mobile have opposed to the deal and are thought likely to make further attempts to block it. The CMA’s final decision is expected by 7 December.

China’s SpaceSail to launch in South America

Low earth orbit satellite firm SpaceSail has signed an agreement with Brazilian State telecoms company Telbras to provide broadband satellite services. The Chinese company reached the deal during President Xi Jinping’s state visit to Brazil following the G20 summit in Rio de Janeiro. It is  SpaceSail’s first international venture and will be powered by the Thousand Sails Constellation to provide connectivity in remote and rural areas, in direct competition to Starlink. Brazil’s government is aiming to diversify satellite services after recent disputes involving Starlink and Elon Musk’s X platform. SpaceSail  currently has just over 1,000 satellites to Starlink’s 6,000.

Google must sell Chrome says US Department of Justice

Antitrust lawyers in the United States have proposed that Google should be forced to sell its Chrome browser in order to reduce the company’s power. It’s part of a recommendation made by the Department of Justice to the US District Court Judge, Amit Mehta, who is set to impose steps to address Google’s search market dominance next year. Launched in 2008, Chrome dominates the browser market. It provides a rich source of information used to train Google’s algorithms and promote its services. But analysts are doubtful that a sale will be imposed, describing it as an ‘extreme measure’ and citing incoming president Donald Trump’s previously stated opposition to the break-up of Google.

Social media firms urge Australian government to delay imposition of age limit

Industry groups in Australia are opposing the introduction of age limits on social media use until an evaluation of age assurance technologies has been completed. The Australian parliament is shortly expected to pass a bill which will permit use of social media only by people aged 16 or over, with the legislation coming into force one year thereafter. In a senate hearing, an industry spokesperson suggested that parliament was being asked to approve a bill ‘without knowing how it will work’. She suggested that a ban on younger users could result in them being driven to ‘darker, less safe online spaces’.

Meta fined by EU over Facebook Marketplace practices

The European Commission has imposed a fine of 798 million euros on Meta over a breach of antitrust rules. The Commission found that the company had tied its Facebook Marketplace ads service to its Facebook social media platform and imposed ‘unfair trading conditions on other online classified ads service providers’. The European Commission has been investigating Facebook’s bundling practices for over three years. Meta has said that the EU had failed to find any evidence of harm to competitors and will appeal the decision, but take action to comply with the ruling in the meantime.

Sources:  The Financial Times, The Wall Street Journal, APNews, Euronews, CNN, The Guardian, The Daily Telegraph, Bloomberg, Economic Times, Ars Technica, Reuters, BBC, Politico, Telecoms.com.