CMA's Proposed Plan of Work 2025/26

17 Feb 2025 12:45 PM

The Competition and Markets Authority (CMA) Draft Annual Plan for 2025/26, outlining the CMA’s key priorities and actions for the next 12 months and the medium term. 

The draft plan comes after the Governments renewed focus and a letter from the Prime Minister Keir Starmer to the UK’s main regulators, including the CMA, inviting them to set out measurable commitments to drive economic growth. The plan takes on board the Government’s renewed focus on growth and attempts to provide an explanation of how the CMA’s work contributes to economic growth, including to safeguard market conditions and acting to promote choice, effective competition and promote a level playing field for markets. 

CMA's Annual Plan 2025/26: Key Priorities 

Amid a macroeconomic and geopolitical landscape defined by uncertainty, the CMA intends to prioritise  key areas of intervention and focus over the next year. We have summarised some of these below: 

• Dynamic Pricing: The CMA intends to broaden its work to scrutinise such as drip and dynamic pricing, travel, housing, online entertainment; and where the CMA has previously set expectations for responsible businesses.  By using its new consumer enforcement powers introduced by Parliament – the CMA will take action on ‘misleading or high-pressure online sales and pricing practices.’ – 
• Public Procurement and Market Investigations: The CMA will focus on identifying and preventing anti-competitive practices such as bid rigging in public sector procurement, aiming to improve value for taxpayers. They highlight it as an area for focus as the government seeks to put large investments into the public sector to improve public services. 
• Merger Control Adjustments: The CMA is reviewing its approach to merger remedies, with a focus on proportionality and considering behavioural remedies in regulated sectors. Already, the CMA has raised deminimus thresholds from £15m to £30m, which they say will help them concentrate on the larger mergers that have more significant impact on the UK's economy. 
• Consumer Protection & Digital Markets:  With the new Digital Markets, Competition and Consumers Act (DMCCA) now in force the CMA plans to enforce new consumer protection rules. The CMA will also regulate firms with Strategic Market Status (SMS) and ensure fair competition in digital markets. The CMA state the implementation of the regime will aim to "boost investment and innovation from large digital firms while supporting fair opportunities for businesses across the UK tech sector." The CMA also states that the regime will remove “barriers to innovation and investment in a targeted, proportionate, and more effective way” for the many businesses and consumers who rely on digital services they are "committed to implementing it transparently, fairly, and efficiently." The CMA must deliver a regime that is swift yet rigorous; robust but pragmatic; and agile yet predictable. 
• Industrial Strategy Alignment: The CMA will collaborate with the government on its industrial strategy, particularly in sectors with high potential for innovation and productivity growth. It will also use its powers to remove barriers to capital flow, innovation, and business scaling, including through market studies, enforcement actions, and merger assessments. The CMA believes that building strong competition at home in the UK will lead to stronger UK champions on the international market. 

Upcoming Events on the CMA Timeline: 

The CMA's plan includes several notable dates of note: 

• 1 January 2025: The new digital markets competition regime commenced, enabling the CMA to begin SMS designations and interventions. 
• 1 April 2025: The final version of the CMA’s Annual Plan will be published following stakeholder consultations. 
• 6 April 2025: The new consumer protection provisions under the DMCCA, including potential fines of up to 10% of annual turnover for breaches, are set to take effect. 
• Spring 2025: The CMA will publish the results of its Consumer Detriment Survey, which will inform its enforcement priorities. 
• Throughout 2025: The CMA will continue reviewing public procurement processes, market investigations, and enforcement priorities. 

techUK's Reaction: A Welcome Focus on Growth and Innovation 

techUK is pleased to see the CMA’s emphasis on economic growth as a core pillar of its strategy. The commitment to ensuring a level playing field for businesses of all sizes, including innovative start-ups and scale-ups, is a crucial step in maintaining the UK’s competitiveness. However, the technology sector is calling for a more detailed articulation of how the CMA intends to implement its strategy in practice. The CMA’s newly granted powers under the Digital Markets, Competition and Consumers Act (DMCCA) provide significant tools to regulate competition in digital markets, but their execution must be proportionate and transparent. 

Addressing Concerns: Proportionality, Predictability, and Process and Pace 

A key concern raised by techUK is ensuring that regulatory interventions from the CMA should  not create an environment perceived as hostile to business investment. 

This is why we welcome the CMA’s commitment to review is mergers & remedies and outreach series for investors and startups, with a particular focus on mergers. The CMA must strike a balance between preventing anti-competitive behaviour and allowing legitimate business growth through mergers and acquisitions.  

Ensuring a Business-Friendly Approach to Emerging Technologies 

One notable gap in the CMA’s plan is a clear framework for addressing emerging technologies, particularly artificial intelligence and foundation models. techUK encourages the CMA to provide an update on its programme of work in this area and to adopt a collaborative approach that supports innovation while mitigating potential risks. 

What's next? 

The CMA expects to release the final version of its plan by the end of March 2025. As the CMA finalises its Annual Plan for 2025/26, techUK urges the regulator to continue engaging with industry stakeholders, refining its approach to enforcement, and ensuring that its interventions align with the UK’s broader economic strategy. By doing so, the CMA can help foster a regulatory environment that promotes innovation, attracts investment, and ultimately benefits consumers and businesses alike.  

techUK has recently joined the CMA’s Growth & Investment Council and is committed to working alongside regulators to develop policies that support both competition and economic growth. You can read the full response here.