Benzinga | Jul 8, 2021 02:58PM EDT

UK Competition Watchdog Warns Motorola Over Possible Sale Of UK Emergency Services Network: FT

* Motorola Solutions Inc (NYSE:MSI) may have to sell the U.K. emergency services network Airwave after the Competition and Markets Authority raised concerns over Motorola exploiting its influence, the Financial Times reports.

* Motorola's Airwave is a key supplier to the U.K.'s ?1.2 billion Emergency Services Network contract. Motorola acquired Airwave for ?817 million in 2016, only months after being named a prime ESN supplier. The old network was due to be shut down by 2019. However, delays to the launch of the new system, partly due to Motorola's technology-related issues, extended the life of Airwave.

* The CMA alleged that Motorola could earn profits over ?1.2 billion between 2020 and 2026 from the old network.

* The CMA will decide whether to launch a full investigation in September after it has consulted with the government and industry.

* Price action: MSI shares traded lower by 0.72% at $222.84 on the last check Thursday.