UK (Parliament Politics Magazine) – The UK Competition and Markets Authority (CMA) plans to speed up its decision-making process to support government efforts for economic growth.
The Britain competition regulator has announced proposals to accelerate its deal evaluations in response to the government’s pressure for a more bold approach.
What changes did the CMA announce to boost UK competitiveness?
The CMA has outlined a strategy to implement major changes in its operations over the next few months, following government calls for regulatory bodies to contribute to driving economic growth.
On Thursday, Business Secretary Jonathan Reynolds urged the CMA to focus on developing a “more competitive business landscape with fewer regulatory regulations.”
The Department for Business and Trade, in a fresh “strategic steer” for the regulator, emphasized that its approach should prioritize making Britain a more appealing hub for global investors.
Why did the CMA face criticism and outline new plans?
The regulator’s plans come after backlash, with Prime Minister Keir Starmer among those highlighting concerns from businesses over its excessive intervention in deals.
At an investment summit in October, Keir Starmer affirmed the government’s dedication to ensuring every regulator, especially those in economic and competition sectors, treats growth with the same level of importance as the business experts present.
This development follows the recent controversy surrounding the departure of CMA chair Marcus Bokkerink, who resigned last month, just after the CMA attended a No 10 meeting with Reynolds and Chancellor Rachel Reeves to negotiate the government’s growth agenda.
The CMA also faced public criticism from Microsoft after its first rejection of the proposed acquisition of Activision Blizzard. Brad Smith, president of Microsoft, slammed the UK in 2023, describing it as “bad for business,” even though the deal was later allowed to proceed.
How is the CMA adjusting its processes to support UK growth?
As part of its proposal to align with the government’s growth targets, the CMA said it would concentrate on four essential areas: speed, reliability, proportionality, and process.
It said its goal is to shorten the pre-notification phase of investigations to 40 working days, compared to the current average of 65. The agency also intends to cut the target time for straightforward phase 1 cases from 35 working days to 25.
The regulator highlighted that its success will depend on the partnership and constructive involvement of businesses and advisers.
How did the CMA’s chief executive Sarah Cardell respond to the government’s growth agenda?
Sarah Cardell stated, “A robust, independent competition regime should both drive growth and investment and uphold consumer interests.”
She said,
“The draft strategic steer provides helpful clarity on the CMA’s priorities and how we should work independently within our statutory framework,”
adding,
“It is pragmatic, workable and reflects the fact that our operating environment has changed.”
Ms. Cardell explained that CMA’s new strategy for revising the mergers process is designed to quickly enhance business and investor confidence, while also ensuring the safeguarding of competition for the advantage of British businesses and consumers.
What did Keir Starmer write in his letter to major regulators regarding the UK’s economic growth?
In a joint letter before last Christmas, Prime Minister Keir Starmer, Chancellor Rachel Reeves, and the Business Secretary urged leading regulators to propose ideas that could stimulate the British economy.
The government reached out to watchdogs like energy regulator Ofgem, water regulator Ofwat, the competition agency, the Financial Conduct Authority, and healthcare regulators to draft new strategies and submit them by January 15, 2024.