The UK Competition and Markets Authority (CMA) has announced a review of its merger remedies policy and introduced a new Mergers Charter to improve transparency and fairness in merger reviews. These changes are part of broader regulatory reforms aimed at making the UK’s competition system more efficient and business-friendly.
What is changing?
1. Review of Merger Remedies Policy
The CMA is reviewing how it handles competition concerns during mergers. Traditionally, it has favored structural remedies (such as forcing companies to sell parts of their business). However, a more flexible approach is now being considered, one that includes behavioral remedies (such as price commitments or restrictions on business practices).
The CMA is seeking feedback from businesses and legal experts on this shift. The consultation will run until May 12, 2025, allowing stakeholders to voice their opinions on the best approach.
2. New Mergers Charter
The CMA has introduced a Mergers Charter, which lays out clear principles for how it will work with businesses and advisors during merger reviews. This charter aims to:
- Increase transparency in decision-making
- Ensure predictable processes for businesses
- Improve communication between companies and regulators
By setting clear expectations, the CMA hopes to make merger reviews more efficient and less uncertain for businesses.
Why Now?
These updates come as part of the UK government’s wider competition law reforms. Chancellor Rachel Reeves has proposed updates to merger investigation rules, including:
- Improving the “share of supply” test to better assess competition concerns
- Clarifying “material influence” rules to make merger investigations faster and more effective
The CMA’s review and new charter show a commitment to balancing economic growth with strong competition enforcement.
What’s Next?
The CMA will collect feedback on its new approach until May 2025 and then decide on any policy changes. Businesses, advisors, and industry experts are encouraged to participate in shaping the future of UK competition policy.