Competition and Markets Authority announces plans for ‘step change’ after government calls for it be less risk averse. The UK competition watchdog has said it plans to speed up its decisions on deals amid calls from the government for it to be less risk averse. The Competition and Markets Authority (CMA) announced plans to deliver a “step change” in how it operates in the coming months. It is among regulators which have faced demands from the government to help its ambitions to accelerate economic growth.
The business secretary, Jonathan Reynolds, said in comments trailled beforehand on Thursday that the CMA should focus on creating a “more competitive business environment with less burdensome regulation”. In a new “strategic steer” for the watchdog, the Department for Business and Trade said its approach should “reflect the need to enhance the attractiveness of the UK as a destination for international investment”.
It follows previous criticism of the CMA, including from Keir Starmer, after businesses complained it intervenes too much in deals. Starmer said at an investment summit in October that the government would “make sure that every regulator in this country, especially our economic and competition regulators, takes growth as seriously as this room does”. It also comes amid a controversy about the departure of its chair, Marcus Bokkerink. He stepped down last month, days after the CMA was one of many UK regulators hauled into Downing Street for a meeting with Reynolds and the chancellor, Rachel Reeves, to discuss their proposals for boosting growth.
There has been criticism of the decision to make a former boss of Amazon UK, Doug Gurr, interim chair in Bokkerink’s place. Microsoft also publicly criticised the CMA after it initially blocked the firm’s planned takeover of the gaming giant Activision Blizzard. Microsoft’s president, Brad Smith, said in 2023 that the UK was “bad for business”, although the deal was eventually given the green light.
The CMA said on Thursday that it would focus on four areas as part of a plan to support the government’s growth ambitions: pace, predictability, proportionality and process. It said it planned to complete a pre-notification phase on its investigations within 40 working days, compared with a current average of 65. It also plans to reduce the target time of “straightforward phase 1” investigations from 35 working days to 25.
It said its success would require “the willingness of businesses and advisers to engage constructively and co-operatively”. Sign up to Business Today. Get set for the working day – we'll point you to all the business news and analysis you need every morning. after newsletter promotion. The CMA’s chief executive, Sarah Cardell, said: “A robust, independent competition regime should both drive growth and investment and uphold consumer interests.
“The draft strategic steer provides helpful clarity on the CMA’s priorities and how we should work independently within our statutory framework. “It is pragmatic, workable and reflects the fact that our operating environment has changed. “We have today set out a programme of rapid, meaningful changes to our mergers process which will enhance business and investor confidence and enable us to continue protecting effective competition for the benefit of UK businesses and consumers.”.
