Competition and Markets Authority

The government plans to consult on legislative reform of the UK’s merger control regime to promote economic growth, including proposals to address uncertainty around the application of the ‘share of supply’ and ‘material influence’ tests that determine when a merger may be subject to investigation. The CMA has also been embedding its 4P framework and commitment to growth. In October it published updated guidance on its approach to jurisdiction and procedure, followed in December by guidance on remedies. It is now consulting on its approach to assessing merger efficiencies.

As it deploys its enhanced consumer protection powers, the CMA has issued guidance in a number of areas, including unfair commercial practices and fake reviews. It is also consulting on draft guidance on price transparency and the prohibition of drip pricing. Meanwhile, its priority targets for early action are “egregious practices where the law is clear” including aggressive targeting of vulnerable consumers, fake reviews, false information, hidden fees and obviously unfair contract terms.

The new digital markets regime lets the CMA designate companies with ‘strategic market status’ (SMS) and impose conduct requirements to promote fair competition and protect consumers. In October 2025, the CMA designated Apple and Google with strategic market status in each of their mobile platforms and it has indicated that it will pursue further SMS investigations in early 2026. Where businesses are designated, the CMA will consult on proposed conduct requirements.

The CMA has sharpened its focus on ESG and labour markets, with priorities that include encouraging competitive markets for green technology through the use of its Green Agreements Guidance and potential work on green heating and energy efficiency. Enforcement action in this area includes a recent £78m fine imposed on car makers for illegal behaviour relating to vehicle recycling. Labour markets – in particular anti-competitive collusion on wages and recruitment – have also been a focus for investigation, with fines recently imposed on sports broadcasting and production companies as well as an ongoing investigation in the fragrances sector.

Companies found to infringe competition law are wary of the risk of large damages claims. The landmark Supreme Court judgment in Merricks v Mastercard was followed by a marked increase in ‘opt-out’ class actions seeking damages for losses resulting from infringements of competition law. But the regime now stands at an inflection point, as the first cases reach substantive judgment and the courts rule on key questions relating to distribution of damages and returns to funders, which may impact funding availability.