The Competition and Markets Authority (CMA) has launched an in-depth investigation into the proposed € 31 billion joint venture between Virgin Media and O2. The European Commission (EC) referred the case to the CMA last month after the CMA argued that it was in a better position to pass judgment as the UK is expected to leave the single market by the end of 2020. Virgin Media and O2 had asked the regulator to move the matter to 'phase 2' quickly, which is common practice when early stages of the investigation find there is sufficient evidence that a deal will reduce competition in the mobile infrastructure mix. O2's and Virgin Media's cable network would immediately create one of the largest telecommunications organizations in Europe, powering the communications of almost 40 million subscribers. The consolidation would also result in savings of £ 6.200 billion and provide the scale and ability to compete with BT and Vodafone in converged network services and Openreach in the wholesale market. In 2016, the EC blocked a proposed € 12.5 billion merger between Three and O2 on the grounds that it would reduce the number of UK mobile operators from four to three, although Three has already appealed this decision successfully. However, given the complementary nature of the Virgin Media and O2 networks, approval in this case is much more likely, albeit with conditions. The CMA expresses its concern that the agreement could have negative consequences for the wholesale mobile and fixed telephony markets. O2 is a provider of Mobile Virtual Network Operator (MVNO) services, while Virgin Media provides backhaul to operators. "The CMA is concerned that, as a result of the merger, Virgin and O2 may have an incentive to raise prices or lower the quality of these wholesale services, ultimately leading to worse treatment for UK consumers. ", said. -declares. The investigation will immediately move to "phase 2", which will be overseen by an independent committee that will review all available evidence to inform its in-depth analysis. Parent companies Liberty Global and Telefónica have committed to creating 4.000 jobs and 1.000 apprenticeships if they receive regulatory approval and have committed to increasing the combined company's gigabit broadband footprint by an additional one million locations, this bringing the total figure to 16 million, within 12 months of the merger. Commitments have also been made to add seven million more homes to 'gigabit networks' and cover more than 100 cities by the end of 2021. Both say they are happy that the investigation is progressing and hope to conclude the merger soon. "Liberty Global and Telefonica are pleased that CMA has agreed to the parties' request to launch a Phase 2 'fast track' process in the UK," a spokesman for the two companies said. “We look forward to working constructively with the CMA to achieve a positive outcome. We still expect the deal to close in the middle of next year.