United Kingdom: Opened consultation on mobile radio network services market investigation draft order

On 18 May 2023, the UK Competition and Markets Authority (CMA) opened a consultation on its draft order regarding the Mobile Radio Network Services Market Investigation until 16 June 2023. The CMA has found that Airwave Solutions, a British mobile communication company, and its owner, Motorola Solutions, can charge prices higher than what would be expected in a competitive market, resulting in a detrimental effect on customers. The CMA estimates that the companies profit from charging nearly GBP 200 million per year more than expected in a well-functioning market. To address this issue, the CMA proposes a draft order under section 161 of the Enterprise Act 2002 which aims to remedy the detrimental effect on customers and would impose a charge control, limiting the charges Airwave Solutions and Motorola Solutions can impose for services within the scope of the control by over 40%. However, the companies will still have the opportunity to recover their reasonable costs and earn a reasonable level of profit expected in a well-functioning market. As part of the order, Airwave Solutions and Motorola Solutions will be required to provide information on their compliance with the charge control and their capital expenditure plans to the Home Office and the CMA.