You have to wonder what the UK Government intends to do with competition policy reform as it announces yet another review of competition policy.
The Government already has a number of initiatives under foot. We have had the recommendations from the Furman Review. The Digital Markets Taskforce which is looking at how best to regulate digital markets is due to report by the end of the year. On top of that in 2019 the outgoing CMA Chairman, Lord Tyrie proposed widespread changes to the competition and consumer protection regimes.
There are also the promised far reaching National Security and Investment Reforms to the merger control regime still outstanding. Furthermore to examine the best way of promoting economic recovery from COVID the Government has already asked the Competition and Markets Authority (CMA) to report on the State of Competition in the UK Economy.
So lots of initiatives and recommendations but little or no action from the UK Government when it comes to a legislative agenda. This is causing a legislative roadblock and confusion about what type of competition policy the Government really wants to promote.
So surprise greeted the announcement by HM Treasury on 14 September 2020 that John Penrose MP had been appointed to lead another review of competition policy. He has been asked to deliver, by the end of 2020, a short independent report building on and adding to the above recent developments. In particular, he has been charged to examine how the UK’s competition regime should evolve to meet the government’s policy aims of promoting a dynamic, innovation-driven economy which can deliver for UK consumers and businesses alike following recovery from COVID-19 and the end of the Brexit transition period.
In particular, the report will consider in a post Brexit era how the UK’s competition regime can best:
- Play a central role in meeting the challenges of the post COVID-19 economy and in driving the recovery?
- Contribute to the government’s aim of levelling up across all nations and regions of the UK?
- Increase consumer trust, including by tackling consumer rip offs and bad business practices in line with the Conservatives 2019 manifesto commitments , and by ensuring the competition regime operates in a way which is strong, swift, flexible and proportionate?
- Promoting UK entrepreneurs taking risks on new ideas and challenging incumbents?
- Make best use of data, technology and digital skills which are vital to the modern economy?
It is hard to see how a surfeit of recommendations are really going to help build investor confidence or a coherent competition policy for the future when few if any are reaching the statute book. There seems like prospect of early reform given the pressure on the legislative timetable. This is despite the desperate need for a review of key issues such as merger control post Brexit and an updating of consumer protection enforcement regime.
Perhaps the Conservative Government elected with a substantial majority at the end of 2019 sees itself a completely new administration notwithstanding the fact it took over from a prior Conservative Government. It is therefore eager to pioneer its own competition law reforms rather than those championed by the previous Government. Only time will tell.
