Research included in the Competition and Markets Authority’s most recent annual report, which was released today, demonstrates that for every £1 spent, the agency generated at least a £22.50 benefit (significantly more than the £10 target set by the UK Government), and over the course of the last three years, consumers saved an estimated $2 billion on average.
In addition, as part of its crackdown on anti-competitive behaviour over the last year, the CMA assessed a record number of fines.
The authority fined companies more than £400 million in the past year, which is the most since the Office of Fair Trading, the CMA’s predecessor, was founded in 2000.
In the past year, the CMA has also used the authority that the UK gained after leaving the EU to intervene in significant situations including Google’s decision to stop using third-party cookies and NVIDIA’s proposed acquisition of Arm.
If the newly established Digital Markets Unit is given legal authority to regulate online enterprises, the CMA will also further broaden its purview.
The CMA’s major initiatives between April 2021 and March 2022 are summarised in the annual report and include:
Examining 827 mergers in total, which is the most mergers the CMA has ever examined (up from about 600 last year).
60 Phase 1 merger cases and 10 Phase 2 investigations were the outcome of this, and three mergers were halted as a consequence of concerns about possible competition.
7 Competition Act inquiries being resolved.
The largest ever fines of £404.1 million were assessed in four infringement rulings.
Completing two market studies that made recommendations on how to enhance child welfare services and electric vehicle charging in the UK.
After suing Teletext Holidays and Alphrooms.com, we can see how crucial it is for travel agencies to honour customers’ entitlement to refunds.
Obtaining promises from companies for 7 investigations into consumer protection problems, including those involving antivirus software auto-renewals and potentially discriminatory ground rents for leasehold properties.
Making sure that commerce between Scotland, England, Wales, and Northern Ireland continues to work in the best interests of consumers and businesses was made possible by establishing the new Office for the Internal Market, which reported for the first time.
Releasing updated consumer guidelines and corporate guidelines for IVF treatment and investigations of false “greenwashing” promises.
The CMA’s departing CEO, Andrea Coscelli, said:
The results demonstrate that the CMA punches well above its weight, saving consumers about £2 billion as a result of the actions we have taken on their behalf.
Even though this is my last annual report, it has been an honour to oversee a group that is crucial to ensuring that all firms, large and small, act honestly.
I appreciate my coworkers who put in a lot of effort and shattered records over the past year to ensure a more competitive market.
I’m happy to leave the CMA with a solid foundation and a broader mandate.
Our dedication to enforcing fair and honest competition is clearly demonstrated by the creation of the new Office for the Internal Market, Subsidy Advice Unit, and Digital Markets Unit.