In the 10 years since its formation, the UK’s Competition and Markets Authority has delivered direct financial benefits totaling £20 billion ($25.6 billion), with broader economic value adding up to multiples of that figure.

That’s what the CMA says in its latest annual report. While the CMA has traditionally been seen as focusing on consumers, its remit includes making markets work for businesses and the economy. Its responsibilities have been strengthened by the Digital Markets, Competition and Consumers Act 2024, and this year’s report sets out its priorities for the year ahead.

In short, the CMA is making everyone take notice. As the regulator’s former director of mergers Nelson Jung, now a partner at Clifford Chance, told the Financial Times late last year: “The CMA is asserting itself as a highly relevant and decisive player on the world stage.” Observers have also noted the CMA aligning itself more with the more robust approach of US regulators and diverging from the position taken in Europe.

New powers in digital markets

CMA Chief Executive Sarah Cardell said: “With the passing of the Digital Markets, Competition and Consumers Act (DMCC Act) , the CMA has new legal powers to protect consumers from unfair practices and unlock thriving competition and investment in digital markets.”

The regulator’s chair Marcus Bokkerink added: “If we want a thriving economy, we need choice, innovation, and investment. That means we need effective competition; and we need consumers and businesses to be confident they will be protected from the unfair practices of a few.”

The report estimates the CMA has returned over £23 ($29) in savings to consumers for every £1 ($1.28) spent by UK taxpayers over the last three years.

Work the CMA has undertaken during the year includes:

• blocking Microsoft’s acquisition of cloud gaming outfit Activision and securing a “substantially restructured deal that put the distribution of many much-loved games in the hands of a strong, independent supplier;”
• securing fairer terms for UK businesses on Amazon Marketplace and Facebook Marketplace;
• taking on a referral from communications regulator Ofcom to consider barriers and solutions for competition in the cloud services market;
• publishing research on the development of AI Foundation Models which led to a set of principles to guide their development and use.

In preparation for taking on its new digital regime responsibilities, the CMA has been in contact with 230 stakeholders in the digital sector.

The DMCC Act gives the CMA power to decide whether key consumer legislation has been breached without going to court. It will be able to impose fines of up to 10% of global annual turnover where breaches are found, and has the power to directly enforce undertakings agreed with firms.

An overview of the CMA’s proposed approach has been published, and consultation on regime guidance is underway.