UK CMA Provisionally Warns Virgin Media O2-Netomnia Deal Threatens Broadband Competition

The Competition and Markets Authority said Friday that Virgin Media O2 parent companies' £2 billion takeover of Netomnia could substantially lessen wholesale competition, limiting the market to two providers: VMO2 and BT's Openreach. The CMA found the deal would likely push up prices and degrade service quality, with customers in the Midlands and Northern England hit hardest given Nexfibre's network footprint. Absent the takeover, rival CityFibre would probably have acquired Netomnia's holding company. Liberty Global and Telefónica agreed to buy Netomnia, the UK's second-largest alt-net covering about three million homes, via their joint venture Nexfibre, backed by InfraVia. The combined full-fibre network would reach roughly eight million homes. Netomnia said the report "did not reflect commercial reality," citing £3.5 billion of unlocked investment. CityFibre urged the CMA to block the deal. The CMA seeks feedback by Oct. 23, 2026, with a final decision due Dec. 15, 2026.