Antitrust Law Daily Wrap Up, INDUSTRY NEWS: New Competition and Markets Authority now U.K.’s primary competition and consumer agency, (Apr 1, 2014)

The Competition and Markets Authority (CMA) began work today as the U.K.’s primary competition and consumer agency and will play a vital role in helping stimulate economic growth and innovation and ensuring consumers get a good deal, the agency announced.

Merging the Competition Commission (CC) with the competition and certain consumer functions of the Office of Fair Trading (OFT), the CMA has a range of new responsibilities and powers to ensure it meets its mission of making markets work well for consumers, businesses, and the economy. These include tighter timetables for investigations, a stronger role in ensuring competition in regulated sectors like financial services and energy, and a reformed legal framework for prosecuting individuals involved in criminal cartel activity.

In its first Annual Plan, the CMA sets out its priorities and work program. These focus on merger control, market studies and investigations, and enforcement of competition and consumer law. The CMA has already taken on a challenging program of markets work in key strategic areas such as banking, energy, payday lending, and higher education. It will now take on from the OFT and CC more than a dozen live competition enforcement and consumer cases, over 30 merger cases, and three ongoing Phase 2 market investigations.

The CMA’s mission is set out under five strategic goals.

Deliver effective enforcement. A first-class enforcement regime is central to the CMA’s purpose and function. The CMA will use new resources granted by the Treasury to take tough action against cartels and other anti-competitive abuses that harm consumers, businesses and economic growth. The CMA also wants to help businesses stay on the right side of the law, and so is establishing with immediate effect a dedicated compliance team to provide guidance and support.

Extend competition frontiers. A key focus will be on examining the role of competition in new and rapidly changing markets, or areas where competition and markets have not previously been used to their full potential.

Refocus consumer protection. The CMA will place the interests of consumers at its heart and help ensure the newly redrawn consumer protection landscape works effectively in their interests.

Achieve professional excellence. The CMA intends to undertake every case, study, and project it handles efficiently, transparently, and fairly, whilst ensuring that all legal, economic, and financial analysis is conducted to the highest international standards.

Develop integrated performance. The CMA aims to establish itself as a trusted competition adviser across government, so that policy frameworks are conducive to competition, and public purchasing benefits fully from rivalry between bidders.

“We want to help achieve a really dynamic economy in which firms are competing hard to satisfy customers with innovative and value-for-money products and services,” Alex Chisholm, CMA Chief Executive, said. “We will use our powers, resources, and ingenuity to promote competition, empower consumers, and strike down illegal behavior. The new CMA strategy, structure, and legal framework will enable our highly professional staff to make well-selected and impactful interventions for the benefit of consumers and citizens across the UK.”

News: IndustryNewsTrends