UK Business Secretary Calls for More Agile Competition Regulator

According to Reuters, British Business Secretary Jonathan Reynolds has urged the country’s competition watchdog (CMA) to become “more agile” and “less risk averse” in an effort to align regulatory oversight with the government’s economic growth strategy. Reynolds’ remarks, delivered in London on Thursday, emphasized the need for the Competition and Markets Authority (CMA) to be more attuned to the needs of businesses.

Per Reuters, Reynolds introduced new guidance for the CMA, stressing that the regulator should minimize uncertainty by being “proactive, transparent, timely, predictable, and responsive.” The call for reform is part of the Labour government’s broader effort to push regulatory bodies to facilitate economic expansion by reducing barriers to growth.

The demand for a more business-friendly regulatory environment marks a significant shift in the UK’s approach to competition oversight. The country has historically taken strong measures to curb corporate dominance and protect smaller businesses and consumers. However, the new direction seeks a balance between consumer protection and fostering competition that encourages investment and innovation.

Related: CMA Chief Removed as UK Government Targets Regulatory Overhaul

As part of this shift, the government recently replaced the CMA’s chair, citing a failure to prioritize its economic growth agenda. The new chair, a former Amazon executive, is expected to lead the regulator toward a more flexible approach. Reynolds pointed to the CMA’s approval of the Vodafone UK-Three merger as an example of the agency’s progress in adopting a streamlined approach.

Per Reuters, the CMA has also committed to expediting its review process for mergers, reducing the initial “pre-notification” stage from an average of 65 working days to 40, with further reductions in assessment timelines for simpler cases. The regulator acknowledged that these changes would require a significant overhaul of its processes but stated that they were achievable.

Source: Reuters