Three, the mobile phone operator, has taken its case to the European Commission after being cut out of a mobile commerce joint venture between its other UK rivals, describing the alliance as anti-competitive and designed to "freeze out" the market challenger.

In June, O2, Everything Everywhere and Vodafone announced their m-commerce joint venture, to sell mobile advertising and develop mobile payment systems. Three, the only other network operator in the UK, was not invited to take part.

Three's regulatory affairs director, Stephen Lerner, said: "The planned and explicit exclusion of Three from the proposed UK m-commerce joint venture is designed to weaken Three's ability to be a competitive force in the UK and denies the initiative's claimed ambition to be a 'one stop shop' for m-commerce."

Three has made representations this week to the European Directorate General for Competition, saying that its rivals should not be allowed to proceed.

The joint venture is likely to be viewed as a merger by the commission and will need its approval. It is understood the partners have begun discussions with the commission and will formally apply for permission this autumn.

Three is fighting battles on a number of fronts from the larger operators. Earlier this week, it emerged that the auction of new spectrum for mobile phone carriers had been delayed after veiled threats of legal action from a number of operators including O2.

As smartphone use explodes, Three and Everything Everywhere are likely to run out of spectrum before O2 and Vodafone, and a delay could harm business.

Owned by Li Ka-shing's Hong Kong-based Hutchison Whampoa conglomerate, Three was the last network owner to enter the market when it launched in the UK in 2003. Having struggled for years to rise above a 10% market share, it has in the last year begun to grow faster than its rivals.

Three finally secured a contract to sell iPhones in the UK in May last year. It also pushed through regulatory changes which have allowed it to offer the cheapest unlimited mobile internet tariff, which means many smartphone users are transferring to the network.

Analysts estimate it now sells 30% of new iPhone 4s, and four times as many customers transfer into Three's network from O2 as head the other way. It also claims to be a net importer of customers from Everything Everywhere and Vodafone.

Lerner added: "Instead of competing for the benefit of consumers, the three operators that hold 90% of the UK market have engaged in a cosy collaboration and closed ranks against competition. The competition authorities in Brussels should not allow this type collaboration to go forward under any circumstances.

"We're asking the commission to take a clear view of what is at stake for consumers and the dangerous precedent this move could set across Europe for the incumbents to freeze out challengers."

The m-commerce venture is designed to speed up the introduction of mobile advertising and payment services. It will act as a one stop shop for advertisers, marketing partners, retailers and banks, developing technology such as swiping mobiles on till readers to make small payments in shops.

The m-commerce partners responded saying that although not a shareholder, Three would have access to its services on equal terms: "The services developed by the joint venture and the technology that underpins them will be available to third parties, including Three, on the same basis as the venture's three shareholders. In fact the success of the venture depends upon its technology being available so that anyone can create m-commerce services and reach the widest possible audience.

"Everything Everywhere, Telefónica and Vodafone felt it made sense to bring their expertise and experience together to get the venture up and running as quickly as possible, before turning to the industry for further participation."