We’re here to help you! The United Kingdom’s Competition and Markets Authority (CMA) has now provisionally approved the merger deal between the two communications satellite companies Viasat and Inmarsat by admitting the obvious, that the deal will do nothing to reduce competition in the presently thriving communications satellite industry.

Over the past 4 months, an independent CMA panel has gathered and scrutinised a wide range of evidence in order to better understand the sector, as well as the potential impact of the deal. This included internal documents from Viasat and Inmarsat, as well as the companies’ competitors (including their plans for future expansion); evidence from airlines; the CMA’s own analysis of sector conditions – and how these could change.

…The CMA’s investigation into the Viasat/Inmarsat deal has provisionally found that, while the companies compete closely in the aviation sector – specifically in the supply of satellite connections for onboard wifi – the deal does not substantially reduce competition for services provided on flights used by UK customers.

Duh. In other words, these bureaucrats spent four months determining what is self-evident to every person who pays any attention to the business of space. Furthermore, both companies are badly threatened by the new players in this industry, like OneWeb and Starlink. This dithering by bureaucrats threatens their survival, as these older companies want to merge to give them the resources to better compete. Being forced to sit and wait only increases the chances that both will go bankrupt, thus reducing competition, the very thing this government agency is supposed to encourage and protect.

Not that the CMA has come to any real decision yet. As its press release notes so nobly, “Today’s findings are provisional, and the CMA will now consult on its findings and listen to any further views before reaching a final decision.”