13th Feb 2025 12:28
(Alliance News) - The UK competition watchdog has said it plans to speed up its decisions on deals, amid pressure from the government for the regulator to be less risk averse.
The Competition & Markets Authority, CMA, has said it plans to deliver a "step change" in how it operates within the coming months.
It is among regulators which have faced demands from the government to help its ambitions to accelerate economic growth.
Business Secretary Jonathan Reynolds is set to say on Thursday that the CMA should focus on creating a "more competitive business environment with less burdensome regulation".
In a new "strategic steer" aimed at the watchdog, the Department for Business & Trade said its approach should "reflect the need to enhance the attractiveness of the UK as a destination for international investment".
It follows previous criticism of the CMA, including from Prime Minister Keir Starmer, after businesses complained it intervenes too much in deals.
At an investment summit in October, Starmer said the government "will make sure that every regulator in this country, especially our economic and competition regulators, takes growth as seriously as this room does".
The CMA was also publicly criticised by Microsoft after it initially blocked the tech firm's planned takeover of gaming giant Activision Blizzard.
Microsoft Corp President Brad Smith said in 2023 that the UK was "bad for business", although the deal was eventually given the green light.
On Thursday, the CMA said it will focus on four areas as part of a plan to support the government's growth ambitions: pace, predictability, proportionality and process.
As part of this, the regulator said it plans to complete a pre-notification phase on its probes within 40 working days, compared with a current average of 65.
It also plans to reduce the target time of "straightforward Phase 1" investigations from 35 working days to 25.
The organisation said its success will require "the willingness of businesses and advisers to engage constructively and co-operatively".
CMA Chief Executive Sarah Cardell said: "A robust, independent competition regime should both drive growth and investment and uphold consumer interests.
"The draft strategic steer provides helpful clarity on the CMA's priorities and how we should work independently within our statutory framework.
"It is pragmatic, workable and reflects the fact that our operating environment has changed.
"We have today set out a programme of rapid, meaningful changes to our mergers process which will enhance business and investor confidence and enable us to continue protecting effective competition for the benefit of UK businesses and consumers."
By Henry Saker-Clark, PA Deputy Business Editor
Press Association: Finance
source: PA
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