This sort of merger does worry me. Once there is no competition, pricing is fixed.
Via Reuters.
BRUSSELS (Reuters) – European Union antitrust regulators are asking British retailers whether the 3.8-billion-pound ($6.40 billion) merger of mobile phone retailer Carphone Warehouse and Dixons Retail will push up the prices of mobile phones and tablets.
Carphone, Europe’s largest independent mobile phone retailer, and Europe’s No. 2 electrical products group, hope the merger will help them capitalize on the growing popularity of smartphones connected to consumer electronics such as ovens and fridges.
The European Commission is now examining the deal and is scheduled to decide by June 25 whether to clear it, demand concessions or open a lengthy investigation.
Since the merger will take out a major player the new company could potentially exploit its bigger market share to raise the price of mobile devices.
The review focuses on the British mobile phones and tablets market, according to a questionnaire sent to retailers earlier this week and seen by Reuters.
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Prices in the UK are already high when compared to some markets, which is evident as Northern Europe pays a lot more in taxes.
However, that does not mean prices won’t be increased as in reality this merger will need to work as a profit over an existing renown and attractive group. It simply can not rely on cost savings alone.
Will prices go up…………. Unfortunately I am absolutely sure they will.
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