Vodafone and Melita's proposed merger has run into opposition from Malta's consumers' association.

In a statement, the consumers' association said that it had expressed its concerns about the deal in a letter to the competition regulator. The Malta Competition and Consumer Affairs Authority must approve the merger for it to be finalised.  

"The telecommunications  sector is already dominated by three suppliers who tend to offer similar products with similar high prices and the same shoddy service" the association said in its letter.  

"Local consumers not only do not have a real choice but to add insult to injury have got to pay very high prices when compares with prices other consumers have to pay in other EU countries," it added.  

It called on the MCCAA's competition division to assess the impact the eventual merger would have on ordinary consumers, and said that if the regulator opted to approve the deal, existing Vodafone and Melita subscribers should be given the chance to opt out of their existing contract. 

The regulator should also conduct a biannual market study to ensure no player was taking advantage of their market dominance, the association said, with the study made public. 

Vodafone and Melita announced earlier this week that they had struck a deal to merge into a combined company, with the new firm operating under the Vodafone brand name but Melita's existing shareholders taking over 51 per cent of the new firm.

"Therefore in reality consumers who chose Vodafone will end up having a contract with Melita, something which they chose not to in the first place," the consumers' association said. 

In a statement issued on the same day the merger was announced, competitor GO also expressed scepticism about the deal, saying it was imperative that the regulator ensured a level playing field for all.