The British government has issued a decisive directive to its antitrust regulator, the Competition and Markets Authority (CMA), tasking it with a sharpened focus on fostering economic growth.
Announced Thursday, this strategic recalibration calls for the CMA to ensure its interventions in merger control, digital markets, and consumer protection are more timely, transparent, and responsive, thereby minimizing uncertainty for businesses and aligning with the nation’s push for economic revitalization.
Since assuming office last year, the Labour government has consistently urged regulatory bodies, including the CMA, to actively contribute to dismantling barriers hindering national economic progress.
While the CMA operates independently, its overarching objectives are guided by a “strategic steer” issued by the Secretary of State for Business.
“Our economic regulators are crucial to creating the conditions for increased growth and investment,” affirmed Business Secretary Jonathan Reynolds in a government statement.
This steer sets out the government’s priorities for the CMA.
This formal instruction crystallizes sentiments Mr. Reynolds had previously signalled in February, when he indicated the CMA needed to adopt a “less risk-adverse” stance in its operations.
Heightened scrutiny amidst expanding powers
The call for a pro-growth approach comes at a time when the CMA’s responsibilities have significantly expanded.
Since the beginning of this year, the regulator has been armed with new powers to scrutinize global tech giants such as Google, Meta, Apple, and Amazon.
This adds to its broadened remit to police mergers following Britain’s departure from the European Union.
The government’s intent to reorient the CMA’s focus has been evident for some time.
Prime Minister Keir Starmer notably singled out the CMA last year, emphasizing the need for the regulator to take economic growth more seriously.
Reinforcing this message, the government appointed former Amazon executive Doug Gurr as the interim chair of the CMA in January, a move widely interpreted as a signal of its desired direction.
CMA embraces growth-centric approach
Responding to the new government steer, CMA Chief Executive Sarah Cardell acknowledged the directive’s alignment with a robust competition framework.
She stated that the government had situated a strong competition regime “squarely in the context of the growth mission.”
“The steer provides helpful clarity on how the CMA should prioritise and go about our work, promoting competition and protecting consumers with a sharp focus on supporting higher levels of investment and economic growth,” Cardell told Reuters.
This updated strategic steer aims to ensure that while the CMA continues its vital work in upholding fair competition and protecting consumers, its actions are increasingly synergistic with the broader national objective of stimulating a more dynamic and prosperous UK economy.
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