DBT Draft Strategic Steer to the Competition and Markets Authority - Consultation

18 Feb 2025 08:07 PM

Every Parliament, the Government publishes a strategic steer to the Competition and Markets Authority, setting out its priorities for the regulator. The Department for Business and Trade has opened a consultation on this Government’s draft proposals, which is open for comment until 6 March 2025.

Economic growth is a priority for this Government, and accordingly this steer establishes how the CMA could support and contribute to this; “the government expects the CMA’s approach to clearly, and unambiguously, reflect the need to enhance the attractiveness of the UK as a destination for international investment”.

The full consultation can be accessed here.

The deadline for submitting responses to the consultation is 9:30am on 6 March 2025. techUK members with an interest in these findings can respond to the CMA directly via strategicsteer@businessandtrade.gov.uk.

Using CMA Tools Proportionately, with Growth and Investment in Mind

The Government has outlined three key considerations for the CMA, when determining where to conduct investigations. It should prioritise pro-growth and pro-investment interventions, focus on conditions that particularly impact the UK markets, and support growth in the Industrial Strategy’s eight key sectors.

The Government also encourages the CMA to work collaboratively, both with UK-based and international regulators, ensuring actions are proportionate, avoiding duplication or delays.

Regarding the regulator’s new powers under the Digital Markets, Competition and Consumers Act (DMMCA), the CMA should use the regime “flexibly, proportionately and collaboratively”, to facilitate opportunities for growth. These powers should also be exercised to improve consumer trust and confidence, which would further promote economic growth.  

Minimise Uncertainty by Engaging with those Affected by the CMA’s Work and Report on Impact of Work

The CMA should provide “proactive, transparent, timely, predictable and responsive” engagement with business, engaging collaboratively to resolve issues. The Government emphasise the need to ensure procedural guidance is clear and transparent for business, whilst retaining a balance between the need for public transparency and the market impact of public communications on regulatory work.

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

techUK is pleased to see the DBT emphasis on economic growth which techUK have routinely called for. 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.

Next Steps 

DBT will consult on the draft strategic steer up until 9.30am 6 March 2025. The Government has committed both to supporting the CMA to deliver on this steer and to issuing official responses to CMA market recommendations within 90 days, under the basis that without “compelling policy reasons” they intend to accept these. The CMA’s framework agreement will be updated in two ways: firstly, to include the relevant reporting requirements included in the steer; and, secondly, to require regular feedback from CMA stakeholders, intended to provide published evidence of the efficacy of CMA decision-making, transparency and commercial awareness.

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