The $19 billion merger between Vodafone and Hutchison’s Three UK is expected to receive regulatory approval, as the UK’s need for investment is deemed more pressing than immediate competition issues, according to Britain’s antitrust regulator. On Tuesday, the Competition and Markets Authority (CMA) stated that it would address its competition concerns if the companies agree to deploy 5G on their current networks within two years, implement short-term measures to protect customers from price increases, and allocate funds to enhance network quality and accessibility for wholesale customers.

The tie-up announced 15 months ago reduces the number of national mobile network operators from four to three and is a clear challenge to regulators’ long-held tenet that multiple networks help keep prices low in major markets. The CMA kicked off its initial review in late January, carrying out a detailed market analysis and gathering feedback from industry and competitors before opening a full investigation.

Despite its size, Vodafone and Three UK had been anticipating regulatory scrutiny and had already allowed themselves until the end of 2024 to complete the deal. However, the CMA’s provisional findings on Friday suggest it may be difficult for the duo to win over the watchdog’s concerns, which include the fact that the move could push up bills for millions of mobile consumers and impact providers such as Sky Mobile.

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In a statement, Vodafone and Three UK contested the CMA’s views and said they “disagree” with several elements of its provisional findings. They vowed to work constructively with the CMA to explore remedies and said they had offered a package of measures that included legally binding investments overseen by the CMA, measures to protect retail customers and wholesale operators, and the pledge to keep prices low on their value brands for two years.

The regulator, whose global reputation was raised in April when it blocked Microsoft’s $69 billion takeover of Activision Blizzard, will rule on the Vodafone-Three tie-up by Dec. 7. The CMA will also decide whether to refer the case to a European Union court.

The EU has a tradition of scrutinizing big European deals, arguing that balancing corporate expansion with consumer rights and competition issues is essential. The scrutiny of the Vodafone-Three deal fits a global trend that sees regulators examining significant changes in markets for essential services, from commodity firms to banks. However, the focus is increasing on digital services like mobile telephony, which are increasingly threatened by rising costs and falling revenue. The CMA’s ruling will be watched closely in other markets, where regulators try to balance investment and consumer rights.