CMA publishes market interventions guidance built around pace, predictability and proportionality
The UK competition regulator consolidated its approach to market reviews into a single document, applying new principles to all market studies and investigations.
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The CMA has published new guidance consolidating its approach to market interventions into a single document that will replace multiple existing guidance documents. The guidance applies to all new market reviews, market studies and market investigations.
The regulator's new framework rests on four principles: pace, predictability, proportionality and process. Under this framework, the CMA will publish a project roadmap at the outset of each market review, study or investigation, setting expectations about timeline and process from the start.
How proportionality and review will work
Remedies imposed after market investigation will include sunset clauses by default, meaning they will expire after a set period unless the CMA determines there is good reason for them to remain in place. The CMA launched a strategic review last month that covers 33 existing market remedies. The government's proposals for broader competition reforms include measures to ensure market remedies remain necessary and proportionate as circumstances change.
Relationship to pending legislation
The published guidance comes as the UK government has launched a consultation on proposed reforms to the competition regime, including changes to how CMA markets work. The government's proposals include replacing the existing market study and market investigation model with a new single-phase market review tool. The proposals also establish a new decision-making model for the markets and mergers regimes to enhance Board involvement and accountability while safeguarding CMA independence from government.
The CMA consulted on draft guidance last year to gather stakeholder feedback before publishing the final version. Currently, under existing legislation, a market study can run up to 12 months, followed by a market investigation lasting 18 or 24 months, totalling up to 3 years. The CMA is currently conducting a civil engineering for road and rail market study under the existing process.