CMA raises concerns about Viasat-Inmarsat deal
Viasat’s bid to take over UK based Inmarsat could potentially be bad news for airline passengers
The Competition and Markets Authority (CMA) said the $7.3 billion takeover would likely reduce competition in the commercial airline Wi-Fi market.
The CMA wrote to the two companies with itsl concerns and they have until October 13 to address them and outline any revisions.
California-based Viasat agreed a deal last year for Inmarsat.
They also sought approvals in Europe and the US.
The merger was recently green-lighted by the UK government over national security requirements as both operate in the defence and security sectors.
Colin Raftery, senior director at the CMA, said ‘it remains uncertain whether the next generation of satellite operators will be able to compete against them effectively.’
“There is great interest in affordable in-flight connectivity, so the CMA’s decision to proceed to a Phase 2 review is not unexpected, even though IFC represents less than 10% of the revenues of the combined company,” said Viasat chief executive, Mark Dankberg.
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