The UK Competition and Markets Authority (CMA) will focus its regulatory efforts on digital market interventions that have a tangible impact on the nation’s consumers and businesses, its chief executive has said. In an address to the techUK Tech Policy Conference, Cardell reaffirmed the competition regulator’s commitment to implementing fair market practices in the tech sector and other industries, but said that they would now also be motivated by the government’s aim to boost growth and investment in the UK economy.
“Our purpose, and our statutory mandate to promote competition and protect consumers, are unchanged,” Cardell told delegates at the techUK Tech Policy Conference yesterday. “Those fundamentals remain front and centre in the draft steer. But they are firmly situated within the government’s number 1 priority of growth and investment, providing helpful clarity to guide the CMA as we independently carry out our statutory functions.”
Cardell’s statement comes a month after the British government published a new strategic steer for the CMA for consultation amid concerns that the antitrust regulator needed to take a stronger role in fostering economic growth. Reuters reported that the appointment of Doug Gurr, the former Amazon UK head, as the CMA’s interim chair in January underscored the government’s inclination towards a business-friendly regulatory environment.
The regulator additionally plans to collaborate with other relevant authorities to ensure that regulatory actions are coherent and conducive to growth and investment in the UK. The CMA will also leverage the new digital markets competition regime to stimulate growth across the UK tech sector and the broader economy. Furthermore, the regulator will implement new consumer protection powers granted by the Digital Markets, Competition and Consumers Act (DMCCA) to drive economic growth by promoting consumer trust and deterring substandard corporate practices.
CMA’s 4Ps framework for effective regulation
The techUK conference also witnessed Cardell debut the CMA’s ‘4Ps’ framework – defined as ‘Pace, Predictability, Proportionality, and Process’ – to refine its regulatory approach, not least in the fast-evolving digital markets. This framework is designed to keep regulatory processes in step with market changes, provide clear regulatory expectations, prioritise interventions with significant UK impact, and enhance engagement with the business community.
The CMA’s new framework will guide its oversight of Big Tech firms and merger control. In January, the CMA received new powers to investigate tech companies with at least £1bn turnover in Britain or £25bn globally, which it designates as having strategic market status (SMS).
In practical terms, this will apply to a select group of companies, including major US tech players like Alphabet, the parent company of Google, and Apple, which are currently under the CMA’s investigations.
Cardell also mentioned the forthcoming introduction of a ‘roadmap’ for potential future interventions for firms with SMS designation. This roadmap aims to clarify the CMA’s priorities for early action, areas of lesser focus, and ongoing considerations. Roadmaps for current investigations into search and mobile ecosystems are set to be published in the coming months.
Recently, CMA concluded an investigation into the partnership between Microsoft and AI firm OpenAI, after determining that the tech major does not control the ChatGPT-creator’s commercial policy.
Read More: CMA opens parallel investigations into Apple and Google’s mobile ecosystems
