Approval follows PM Starmer39;s call for focus on growth
Lawyer says accepting behavioural remedies shows pragmatism
New approach could encourage consolidation in other sectors

LONDON, Dec 5 Reuters Britain39;s decision to allow two of its four mobile networks to merge is the first big sign that regulators have taken on board the government39;s wish for them to prioritise economic growth and infrastructure investment over lower consumer prices.

The Competition and Markets Authority CMA antitrust regulator cleared the 19 billion VodafoneThree UK deal on Thursday after it accepted the companies39; argument that better networks would drive competition and be good for the economy.

The approval comes 18 months after the CMA infuriated Microsoft by blocking its 69 billion Activision Blizzard deal outright over concerns about competition in the nascent cloud gaming market.

On that occasion, it rejected Microsoft39;s offer of behavioural remedies pledges on how the combined entity would operate to maintain competition by saying they would be difficult to monitor.

After Microsoft protested that Britain was closed for business, the increasingly isolated CMA changed tack to approve a revised deal.

On Thursday, it accepted behavioural remedies for the VodafoneThree deal, tasking telecoms regulator Ofcom to oversee promises on pricing and investment to satisfy its competition concerns a change in approach for the regulator.

Britain39;s new Prime Minister Keir Starmer told…