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The UK government has instructed the Competition and Markets Authority (CMA) to align more closely with its economic growth agenda by making quicker, more transparent decisions in areas such as merger control, digital markets, and consumer protection.
Business Secretary Jonathan Reynolds emphasized that regulators like the CMA are vital for fostering investment and breaking down barriers to growth. In a strategic directive issued Thursday, the government reinforced its expectation for the CMA to act with greater urgency and responsiveness. Reynolds had previously criticized the watchdog for being overly cautious, stating in February that it must become "less risk-averse."
Although the CMA operates independently, it is guided by a strategic steer from the business secretary. The current Labour administration, in power since last year, has increased pressure on regulators to play a more active role in boosting the UK economy.
Prime Minister Keir Starmer has previously highlighted the CMA as a key agency needing reform to better support economic expansion. Reinforcing this stance, the government appointed former Amazon executive Doug Gurr as interim chair of the CMA in January.
Since Brexit, the CMA’s authority has expanded, giving it greater oversight of mergers and the power to regulate tech giants such as Google, Meta, Apple, and Amazon. CMA CEO Sarah Cardell welcomed the new directive, stating it aligns the competition regulator’s role with the UK’s broader economic growth mission.
She added that the strategic steer offers "helpful clarity" for prioritizing work that encourages competition, protects consumers, and drives investment.
This move marks a clear shift in regulatory tone, pushing for a pro-growth approach while maintaining consumer safeguards in the UK’s evolving economic landscape.
