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CMA to undertake review of state of competition in the UK

February 17, 2020By Preiskel & Co

Andrea Leadsom and Sajid Javid, in one of their last acts as government ministers,addressed a letter to Andrea Coscelli, the Chief Executive of the UK’s Competition and Markets Authority (“CMA”), commissioning a regular review of the state of competition in the UK.

The letter argues that existing indicators of how competition is functioning in the UK economy are limited, and therefore commissions the CMA to undertake regular state of competition reports. The lack of UK data on the functioning of competition was highlighted in Technopoly: and what to do about it, Reform, Redress, and Regulation, 2018 paper co-authored by Preiskel & Co Partner, Tim Cowen.

The letter comes at an interesting time, as the CMA is preparing to take on an enhanced role following the UK’s departure from the European Union, and as the Prime Minister has indicated that the UK might forge a new path in its approach to competition law, rather than remaining aligned with the EU regime. With competition law and its enforcement very much on the agenda, and the CMA’s December 2019 publication of its market study interim report on online platforms and digital advertising recommending statutory reform to tackle competition issues arising in digital markets, this report will be one to watch out for.

The first report is expected to be published in summer 2020.

The letter, and the terms of reference for the state of competition review, can be found here.

Please contact Tim Cowen if you have any questions regarding the above.

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