CMA poised to soften competition approach in government growth push  – UKTN

The UK competition watchdog is reviewing how it can approve more deals amid increasing government pressure to fall in line with its push for economic growth.

The Competition and Markets Authority (CMA) said it was delivering a package of reforms that will address the pace, predictability, proportionality and process of its regulatory activities. 

The CMA said its objective is to approve as many deals as possible, with a preference for implementing remedies in questionable mergers and acquisitions, rather than complete blocks. 

In March, the regulator will launch a review of its approach, looking at how it can strike a better balance between consumer and competition protection and allowing growth. 

This will extend to global deals, for which the CMA will look to distinguish between deals that directly impact the UK market and those that warrant a wait and see approach, examining whether action from other authorities could resolve concerns in the UK. 

This suggests a softer approach from the regulator into major international deals, which has been a contentious issue between the watchdog and large corporations. 

In recent years, the CMA has clashed with Microsoft over its eventually approved acquisition of Activision Blizzard, with Adobe over its attempt to buy Figma – a deal that was ultimately scrapped due to regulatory scrutiny – and other Big Tech companies. 

Though the regulator has signalled through policy papers that it is taking its role in keeping the power of Big Tech in check – particularly following the introduction of the Digital Markets, Competition and Consumers Act – it has had to balance that with an agenda of growth. 

The CMA also said a lack of predictability in its decisions has been harmful to investor confidence, with the regulator’s chief executive Sarah Cardell describing UK law as giving a wider jurisdiction to its competition regulator than the international standard. 

To address this, the CMA will clarify its remit and update its guidance to give companies a clearer sense of what deals may require a probe. 

It will also attempt to reduce the time it takes to come to decisions through the implementation of KPIs to encourage speedier processes. 

“A robust, independent competition regime should both drive growth and investment and uphold consumer interests. This was endorsed by the Secretary of State in his speech today.  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,” Cardell said.

“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.”

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