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Reading: CMA Proposes Major Overhaul of UK Merger Remedies Guidance
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CMA Proposes Major Overhaul of UK Merger Remedies Guidance

Editorial
Last updated: October 16, 2025 12:26 pm
Editorial
Published October 16, 2025
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The UK’s Competition and Markets Authority (CMA) has launched a consultation on proposed changes to its merger remedies guidance (CMA87), in what it describes as a comprehensive refresh to make its merger control regime more effective and predictable.

The update aims to ensure merger remedies are fit for purpose, giving businesses greater clarity while preserving strong protection for competition and consumers. The proposals align with the CMA’s broader “4Ps” reform agenda — pace, predictability, proportionality, and process — designed to foster growth and business confidence.

Under the draft guidance, the CMA would take a more flexible approach to behavioural remedies, which could be accepted in certain cases at both Phase 1 and Phase 2, alongside the authority’s traditional preference for structural remedies such as divestitures. The CMA stresses, however, that it will continue to reject any proposals that fail to prevent harm to competition or risk higher prices for consumers.

The revised framework also clarifies how the CMA will assess rivalry-enhancing efficiencies — such as lower costs, better quality, or increased innovation — and relevant customer benefits (RCBs), ensuring that pro-growth deals that strengthen competition can proceed wherever possible.

The guidance incorporates recent process improvements, including earlier engagement and greater transparency for merging parties.

Joel Bamford, the CMA’s Executive Director for Mergers, said the reforms aim to provide “greater clarity and certainty” while keeping the focus on effective outcomes for UK consumers.

The consultation runs until 13 November 2025, with the final guidance expected to be published later this year.

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