Regulator will focus on ‘truly problematic mergers’

The competition regulator has said it will focus on “truly problematic mergers” to allow more deals to go ahead in support of the government’s pledge to drive growth.
The Competition and Markets Authority has admitted it must “evolve” while also respecting its mandate to promote competitive business practices for the benefit of consumers in the UK.
Sarah Cardell, chief executive of the CMA, delivered the message at the Chatham House Competition Policy Conference 2024 after Sir Keir Starmer identified antitrust regulation as an area holding back growth.
She said: “We must deliver a regime that leaves no one in any doubt that the UK is open to business.
“The goal for merger control is simple — and this has always been the case: every deal that is capable of being cleared either unconditionally or with effective remedies should be. Only a truly problematic merger, where the harm to businesses and consumers cannot be effectively addressed through remedies, should not proceed.”
Cardell announced the regulator would launch a review of its approach to remedying deals identified as a risk to competition, which would assess the scope for such remedies and their role in preserving good outcomes for consumers. The competition authority often demands that companies divest assets to address concerns but Cardell said the review would assess when behaviour remedies, such as commitments on investment in particular areas, may be more appropriate.
The prime minister promised to cut regulation hindering economic growth in a speech at the government’s investment summit last month.
He said: “We will make sure that every regulator in this country — especially our economic and competition regulators — takes growth as seriously as this room does.
“The key test for me on regulation is growth. Is this going to inhibit or unlock investment?”
The CMA recently took a step closer to clearing a merger of Vodafone and Three after accepting a legally binding commitment that the combined company would upgrade mobile networks across the country, and provide short-term protections for customers. The two companies, which will merge to create the nation’s largest mobile operator, have pledged to retain some existing tariffs and data plans for at least three years to prevent price rises for consumers in the near future.