The Competition and Markets Authority has been told to prioritise economic growth in a "reset" of the regulator's priorities.
A draft “strategic steer” published by the Department for Business and Trade in February set out how the CMA would be expected to “support and contribute to the overriding national priority of this government – economic growth”.
It said the regulator’s approach should “clearly, and unambiguously, reflect the need to enhance the attractiveness of the UK as a destination for international investment”.
DBT announced yesterday that the steer has been put into effect, describing it as "part of wider push to ensure regulators drive investor confidence and support economic growth across the UK as part of the plan for change".
The move comes three months after ministers ousted the CMA's chair, Marcus Bokkerink, from his role, replacing him with former Amazon UK head Doug Gurr. The move was part of a push to force regulators to prioritise growth, and followed complaints from businesses that it was taking an overly interventionist approach.
Announcing the reset, business secretary Jonathan Reynolds said economic regulators are "crucial to creating the conditions for increased growth and investment".
"This government believes in promoting and protecting competition – that is fundamental to our growth mission and Britain’s modern industrial strategy," he said.
The steer says the CMA "can support growth and investment as it discharges its statutory functions, harnessing tools such as competition and consumer law enforcement, merger control, market studies and investigations, the digital markets competition regime (introduced in the Digital Markets, Competition and Consumers Act 2024 (DMCCA)), and the provision of advice to government".
But it adds: “It is equally important that the way in which the CMA goes about its work supports growth and investment. We expect the CMA’s actions to be swift, predictable, independent and proportionate.”
The watchdog should use the tools at its disposal “proportionately, with growth and investment in mind”, according to the steer.
This means when determining whether to instigate reviews, studies or investigations, or considering “remedies”, the CMA should “give appropriate consideration” to: prioritising pro-growth and pro-investment interventions; focusing on markets and harms that particularly impact UK-based consumers and businesses; and supporting growth and international competitiveness in the industrial strategy’s eight key sectors. These are: advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
With this in mind, the regulator should use the DMCCA digital market competition regime “flexibly, proportionately and collaboratively to unlock opportunities for growth across the UK digital economy and the wider economy”, it says.
“Recognising that the development of markets driven by new and emerging technologies is not always easily predictable, the CMA should take particular care to ensure growth and innovation benefits are prioritised, including through supporting the government in delivery of the AI opportunities action plan,” it adds.
The steer also instructs the CMA to “minimise uncertainty” for those businesses affected by its work.
“In doing so, the CMA should focus on collaborative approaches to resolving issues. In carrying out their work the CMA should be attuned, and responsive to, feedback from business,” it says.
And it should review its guidance and practice “to make it accessible and meaningful to business to ensure that businesses receive a ‘best in class’ experience”, it adds.
The document also says the government “expects to see clearly and quickly how the CMA intends to account for this steer in its work, and report on how it has applied the steer in practice in its annual report”.
The relevant reporting requirements will be added to the CMA’s framework agreement, it adds.
The agreement will also be updated to require regular feedback from the watchdog’s stakeholders, including businesses and consumers – which will be used to publish information about “CMA decision-making, commercial awareness, transparency and stakeholder engagement”.
CMA chief executive Sarah Cardell said the strategic steer "provides helpful clarity on how the CMA should prioritise and go about our work, promoting competition and protecting consumers with a sharp focus on supporting higher levels of investment and economic growth".
"It reinforces the approach we have set out in the CMA’s 2025-26 annual plan and in the roll out of our 4Ps approach, focused on driving greater pace, predictability, proportionality and an improved process committed to strong stakeholder engagement," she said.
Reynolds added: "I am grateful for the positive approach taken by the new interim chair and the chief executive as they re-focus the work of the CMA, supporting our Plan for Change to drive growth, investment and business confidence while protecting consumers."