The CMA has started an investigation into Vodafone’s merger agreement with Three UK.

The move would see the companies’ telecoms operations under one single network provider.

The CMA now has up to 40 working days to assess the deal as part of a Phase 1 investigation.

The probe will look to identify whether the deal may lead to a "substantial lessening of competition". If this is found, there will be a more in-depth Phase 2 investigation required.

"This deal would bring together two of the major players in the UK telecommunications market, which is critical to millions of everyday customers, businesses and the wider economy," said Sarah Cardell, chief executive, CMA. "The CMA will assess how this tie-up between rival networks could impact competition before deciding next steps.

"We now have 40 working days to complete this formal Phase 1 investigation, before publishing our findings and any next steps."

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