UK regulators give okay on Viasat’s purchase of Inmarsat
After months of delay, the United Kingdom’s Competition and Markets Authority (CMA) regulators has finally admitted that Viasat’s purchase of Inmarsat would not reduce competition in the communication satellite industry, and has approved the purchase unconditionally.
The evidence analysed by the panel shows that, while Viasat and Inmarsat compete closely– specifically in the supply of satellite connectivity for wifi on flights – the deal does not substantially reduce competition for services provided on flights used by UK customers.
The evidence also shows that the satellite sector is expanding rapidly – a trend that is set to continue for the foreseeable future. This is due to increased demand for satellite connectivity, driven largely by the ever-growing use of the internet by business and consumers.
The CMA press release is a classic of bureaucracy blather. Essentially, it tries to make it sound like this agency did lots of difficult hard work to discover what is patently obvious, that without this merger these two companies will almost certainly not be able to compete with the emerging new satellite communications companies coming on line.
The best thing that the UK could do to encourage competition and new industries in the UK would be to defund this agency, now. Its existence accomplishes nothing other than to stand in the way.
After months of delay, the United Kingdom’s Competition and Markets Authority (CMA) regulators has finally admitted that Viasat’s purchase of Inmarsat would not reduce competition in the communication satellite industry, and has approved the purchase unconditionally.
The evidence analysed by the panel shows that, while Viasat and Inmarsat compete closely– specifically in the supply of satellite connectivity for wifi on flights – the deal does not substantially reduce competition for services provided on flights used by UK customers.
The evidence also shows that the satellite sector is expanding rapidly – a trend that is set to continue for the foreseeable future. This is due to increased demand for satellite connectivity, driven largely by the ever-growing use of the internet by business and consumers.
The CMA press release is a classic of bureaucracy blather. Essentially, it tries to make it sound like this agency did lots of difficult hard work to discover what is patently obvious, that without this merger these two companies will almost certainly not be able to compete with the emerging new satellite communications companies coming on line.
The best thing that the UK could do to encourage competition and new industries in the UK would be to defund this agency, now. Its existence accomplishes nothing other than to stand in the way.