The U.K. government is pressing ahead rapidly with its growth agenda, urging all U.K. regulators to prioritize growth, investment and innovation.
The U.K. Competition and Markets Authority (CMA) has been explicitly under fire. In a dramatic move last month, ministers replaced the authority's chair. Now, the government is consulting on its much anticipated "strategic steer" to the CMA, setting out how it expects the authority to carry out its functions going forward.
The draft steer contains broad directions for the CMA. These include using its powers to enhance growth, competitiveness and investment into the U.K., focusing on markets impacting U.K.-based consumers and businesses, and minimizing uncertainty for affected businesses.
In parallel with the draft steer, and putting some of its objectives into action, the CMA's chief executive announced proposals to improve the U.K. merger control process.
If implemented, these should result in tangible benefits for merging parties in terms of timing, clarity and (hopefully) more paths to clearance.
The CMA has committed to:
- Make review periods shorter by June 2025. It will aim to complete pre-notification in 40 working days and reduce the target for review of "straightforward" phase 1 cases to 25 working days.
- Clarify its jurisdictional reach by updating guidance on how it applies the material influence and share of supply tests.
- Launch a review (in March) of its approach to remedies, including the potential for deals to deliver pro-competitive investments. It also wants to ensure a proportionate approach to global deals and, significantly, will explore when it might be more appropriate to see whether action by other authorities could resolve U.K. concerns, rather than itself stepping in.
- Improve how the CMA engages with businesses, including introducing more senior meetings early in a merger review.
Our alert tells you more about what the government's steer and the CMA's proposals mean for dealmaking in the U.K.
Political leadership in other key jurisdictions are pursuing similar growth and investment ambitions. To learn how these U.K. developments fit into in the wider merger control enforcement landscape, see our global merger control trends report.
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