The Competition and Markets Authority (CMA) has officially voiced its support for a government plan to streamline the UK’s competition rules. In a detailed response to the “Refining our Competition Regime” consultation, the regulator explained that updating these laws is essential for driving economic growth and improving household prosperity across the country. The CMA believes that refining the current system will help the UK maintain its global reputation as a stable and attractive place for business investment.
A major highlight of the proposal is the creation of a “single-phase” market review tool. Currently, the CMA must navigate a complex two-stage process that can be slow and rigid. By switching to a more agile, single-phase model, the regulator can tailor its investigations to fit the specific needs of each case. The CMA noted that “the ability to adjust flexibly as the CMA’s understanding of the market develops, would be fully engaged by the more agile new single-phase market review proposal”. This new approach aims to provide faster results while giving businesses a clearer “roadmap” of what to expect.
The CMA also welcomed changes to how it makes big decisions. The proposed model involves committees where at least half of the members are independent experts or non-executive directors. This is intended to fix a “long-standing, unusual feature” of the UK system that previously prevented the CMA Board from being directly involved in certain high-profile cases. By bringing the Board into the loop, the CMA can ensure that its decisions are more accountable and consistent with its long-term strategy.
While the regulator is enthusiastic about most of the reforms, it did raise concerns about giving the Secretary of State a larger role in drafting its technical guidance. The CMA warned that too much political involvement could “materially increase risks and reduce certainty for businesses,” potentially compromising its independence as a competition authority. Despite this caution, the CMA remains confident that these “specific refinements” will ultimately make the UK market fairer and more efficient for everyone