CMA Flags Competition Concerns Over Nexfibre's £2bn Netomnia Deal
CMA Flags Competition Concerns Over Nexfibre's £2bn Netomnia Deal
The UK's competition watchdog warns Nexfibre's £2bn acquisition of Netomnia could 'substantially' impact wholesale broadband. What does this mean for your internet choices?
The UK's competition watchdog, the Competition and Markets Authority (CMA), has raised significant concerns over Nexfibre's proposed £2 billion acquisition of rival fibre broadband firm Netomnia. The CMA provisionally found that the tie-up could “substantially” harm competition within the wholesale supply of fixed broadband services across the UK.
Nexfibre, a joint venture backed by major players like Liberty Global and Telefonica (co-owners of Virgin Media O2), announced its intention to buy Netomnia's owner, Substantial, in February. This move aimed to expand Nexfibre's network reach to approximately eight million premises by late 2027, positioning it as a significant challenger to BT's dominant Openreach network.
Following a full-scale investigation, the CMA has now requested Nexfibre and Netomnia's parent company, Substantial (which also owns Brsk fibre broadband and retail providers YouFibre and Brsk ISP), to propose solutions by October 16 to address these competition worries.
The watchdog will then consult publicly on these proposals before making a final decision.
Nexfibre's owners have expressed strong disagreement with the CMA's interim report, stating it “does not reflect the commercial and competitive reality of Britain's fibre market.” They argue that the deal would unlock £3.5 billion in international investment, boost consumer choice, and accelerate the nationwide rollout of full fibre broadband. Blocking the deal, they contend, would deter international investment, solidify Openreach's “monopoly,” and ultimately leave consumers paying more.
However, another broadband rival, Cityfibre, has urged the CMA to block the acquisition entirely.
A Cityfibre spokesperson emphasized that the CMA is “right” in its assessment that the transaction would “significantly reduce competition” and undermine benefits such as faster speeds, greater innovation, and lower prices for UK consumers. They stressed the importance of the CMA taking the next step to block the deal to prevent future harm.
The outcome of these discussions could have a profound impact on the future landscape of the UK's broadband market. #UKBroadband #CMADecision #FibreOptic
