Open Markets’ Submission on the UK Government’s Strategic Steer to the CMA

Open Markets submitted a letter welcoming the UK's draft Strategic Steer to the CMA, emphasizing alignment with broader policy goals while maintaining the regulator's independence.

Key Points:

• Competition Drives Growth & Innovation: Strong enforcement fosters economic growth by ensuring startups and challengers can compete against dominant incumbents. OMI urges the government to explicitly recognize this in the final strategic steer.

• Broader Public Interest Benefits: Competition policy enhances economic resilience, improves working conditions, supports small businesses, ensures media plurality, curbs inflation, and prevents corporate political influence. OMI calls for these aspects to be acknowledged in policy decisions.

• Whole-of-Government Approach: OMI advocates for competition policy to be integrated across government agencies, suggesting a formal duty for departments to consider competition effects and the creation of a dedicated task force.

• International Collaboration: Cooperation with global regulators is vital to address monopolistic behavior of multinational corporations. OMI warns against relying solely on foreign enforcement, as this could weaken UK competition oversight.

• Specific Recommendations:

  • Balance speed with rigorous enforcement to prevent rushed, ineffective decisions.

  • Avoid excessive collaboration with businesses to prevent regulatory capture.

  • Expand stakeholder engagement to include civil society groups, not just businesses and consumers.

OMI urges the government to reinforce the CMA’s role in promoting fair competition, economic resilience, and democratic integrity while safeguarding its independence.