The CMA

Competition and markets authority (CMA)

The CMA was launched in April 2014 to rationalise competition policy in the UK. The CMA is now the UK’s key competition regulator, combining the competition elements of the OFT and Competition commission.

The role of the CMA is to:

1. Investigate mergers which could restrict competition
2. Undertake market studies and investigations where there may be competition and consumer problems
3. Investigate where there may be breaches of UK or EU law against anti-competitive agreements and abuses of dominant positions
4. Bring criminal proceedings against individuals who commit a cartel offence
5. Enforce consumer protection legislation to tackle practices and market conditions that make it difficult for consumers to exercise choice
6. Co-operate with sector regulators (such as Ofcom) and encouraging them to use their competition powers considering regulatory references and appeals

Preventing abuse of dominance

Preventing market sharing

Preventing price fixing

Videos courtesy of the CMA

Example of CMA investigation into retail banking.

Story: “Pork Pies merger may give rise to competition concerns“.

 

See also:

EU Competition Policy

Contestable market theory

Banking regulation

Financial crisis

Transfer pricing