After two phases of investigation, the British regulator, for the time being, has concluded that the deal between Viasat and Inmarsat will not significantly stifle competition for services offered on flights used by UK customers
Viasat’s $7.3bn acquisition of Inmarsat gets provisional clearance from UK CMA. (Credit: Inmarsat Global Limited)
The UK Competition and Markets Authority (CMA) has provisionally cleared Viasat’s previously announced $7.3bn acquisition of Inmarsat following the completion of an in-depth phase 2 probe into potential competition concerns in Britain.
After two phases of investigation, the British regulator, for the time being, has concluded that the deal between Viasat and Inmarsat will not significantly stifle competition for services offered on flights used by UK customers.
According to the CMA, with increased demand for satellite connectivity, the satellite sector is expanding quickly, and has a number of new providers arriving or planning to emerge.
The British competition regulatory authority said that the merged company would face competition from both new providers like Starlink and established companies including Intelsat and Panasonic.
CMA phase 2 independent inquiry group chair Richard Feasey said: “This is an evolving and rapidly expanding sector, in which there have been significant developments even during the course of our 4-month investigation. We see this continuing as demand for satellite connectivity increases.
“While Viasat and Inmarsat compete closely, the evidence suggests that the merged company will face significant competition in the coming years – from both emerging players like Starlink and from established firms like Intelsat and Panasonic.
“This competition has led us to provisionally conclude that airlines and their UK customers will not be adversely affected by the deal.”
In July 2022, the CMA launched its phase 1 investigation into the deal. Subsequently, it stated that if the deal goes through, then airlines will face higher prices and lower quality on-board Wi-Fi, while a major competitor will be eliminated from the market.
An in-depth phase 2 probe was launched by the regulator in October 2022.
The CMA is now seeking responses from interested parties by 21 March 2023 to its provisional findings on the deal. The feedback will be considered before issuing a final report, which is due by 30 March 2023, said the CMA.