GovWire

Thank you all for joining us today, as the CMA turns 10.

This is a pivotal moment not just for us as an organisation, but for the UKs evolving approach to promoting competition and protecting consumers. It is also an opportunity to both reflect and to look to the future.

As we mark our first decade of promoting competition and tackling unfair practices, its worth considering how our role, and the environment we operate in, has changed.

Certainly, some of the challenges we considered in our first shadow Board meeting back in Victoria House, more than 10 years ago, were very different from the ones we contemplate now. In the 10 years since then, the UK has exited the EU and we have experienced a global pandemic, a persistent cost of living crisis, mounting concern over the changing climate, and unprecedented digital transformation.

As an institution, we have grown in scale and geography, with offices now at 6 locations across the UK. We have set up new functions the Office for the Internal Market, the Subsidy Advice Unit and our Microeconomics Unit. And we stand poised to take on substantial new powers to promote competition in digital markets and to deliver robust and effective consumer protection.

I am immensely proud of the positive impact the CMA has delivered for the UK over the last decade. But I am also acutely aware of the very real challenges now facing the people of this country and our wider economy.

Whether it is improving productivity, economic growth, and the resilience of our economy; mitigating cost of living pressures; tackling the housing crisis; or, of course, addressing the power of large digital firms, and the potentially unprecedented opportunities and risks of emerging technologies like AI across all of these, the CMA has a key role to play.

Staying focused on delivering the best outcomes for people, businesses, and our economy. Prioritising our work where its needed the most. These are the core pillars of the long-term strategy Marcus Bokkerink, Chair of the CMA, and I set last year which drives our action going forward.

So, 10 years on, there is much for us to do and Im full of energy and optimism for the future. And I know my feelings are shared by the whole senior leadership team, Marcus and our Board, and of course across the wider CMA. Today is not just a moment to reflect on 10 years of the CMAs work. It is also a watershed moment in the evolution of the UKs competition and consumer protection landscape. What comes next will inevitably be shaped by the new consumer and digital frameworks brought into force by the Digital Markets, Competition and Consumers (DMCC) Bill.

As we consider the new responsibilities being given to the CMA, and the range of issues we seek to address, Id like to take this opportunity to set out, quite simply, why competition matters. And why a robust and independent competition and consumer protection regime is essential to deliver real benefits for people, businesses and the wider UK economy.

In doing so, I will also address some of the critiques we hear from time to time, for example that competition enforcement stymies growth and chills investment; that a UK competition authority should have a limited remit in a globalised, digital world; and that the CMA is overstepping our role into areas of policy which should not concern us. To be clear, we welcome this debate. Because we should never take for granted the mandate and responsibility the CMA has been granted by Parliament we should always be able to enunciate, clearly, our purpose, and, coherently, why competition matters.

Why does competition matter?

We are all familiar with the theory of competition. Competition at its core forces us to do our best. It has been described variously as the keen, cutting edge of business Footnote 1, the mother of inventionFootnote 2, the incentive to progress and the basis of protection to the consumer Footnote 3.

The theory may be clear. But we should never presume that a case for competition as a matter of theory will mean our work speaks for itself. The CMAs expertise and independence are part of our strengths, but we do not work in an ivory tower. We apply our expertise to real problems facing businesses and people throughout the economy.

So one of my priorities as CEO has been to focus relentlessly on the actual outcomes of our work for people, businesses, and the economy;

• when people hear about our work, I want them to know its going to improve their lives as consumers, taxpayers and stakeholders in our society

• I want competitive, fair-dealing businesses to know that we are on their side, when we take action against the small minority of firms who would restrict competition and harm consumers

• we all have an interest in the long-term health of the economy consumers, businesses and government alike. I want all parts of our society to know that the work of the CMA supports the wider agenda for an economy that grows productively and sustainability

So how does the CMA think about the benefits of competition in 2024, not as technocrats or philosophers but as the agents of real, demonstrable positive outcomes for people, businesses and the wider economy?

Lets explore this in a little more detail.

People

Why does competition matter for people? We know that when competition is weak, the real cost of that is borne by all of us in the form of higher prices, lower quality, reduced choice, and poor incentives for companies to treat customers fairly.

And too often those who can afford it the least are hit the hardest: vulnerable customers and those struggling with the cost of living, who are less likely to switch to a better deal or more likely to fall victim to unscrupulous practices. So, we are committed to promoting an environment where people can be confident theyre getting great choices and fair deals.

Here, our competition work dovetails with our critical role enforcing consumer protection law. Weve cracked down on unfair contract terms our work on leasehold property has freed thousands of homeowners from doubling ground rents that stopped them from being able to sell their homes or remortgage. Were looking at online sales practices that can make people feel under pressure to buy things they dont want or arent right for them. And weve followed up our clear guidance on making green claims about products and services with enforcement cases to show that were serious about creating a level playing field most recently securing key changes from fashion firms Boohoo, ASOS and George at Asda.

All this serves to ensure people are protected and can be confident when they engage with markets. That they dont feel powerless in the face of large corporations or those who seek to exploit them. That confidence, underpinned by effective markets and strong consumer protection, drives growth across our economy.

The DMCC Bill will give new powers for the CMA to directly enforce consumer law against firms who dont play by the rules, with penalties of up to 10% of worldwide turnover. This will be a step-change in our ability to safeguard peoples engagement in our economy, and we are carefully considering and preparing for our first cases.

One example which goes to the heart of why competition really matters to peoples daily lives is being able to access and afford food. The CMA has worked hard for a decade to keep supermarket competition strong in every town and community in the UK. We stepped in to protect shoppers when Morrisons and Marks & Spencer breached an order not to bar rivals from opening stores nearby. We blocked Sainsburys proposed acquisition of Asda in 2018, after the evidence showed it was likely to leave consumers worse off. We used our consumer powers to make sure supermarkets display prices clearly and fairly.

Now were looking at whether loyalty schemes are operating fairly and if it can be made easier for shoppers to identify savings. We are also taking forward a market study into baby formula, where weve seen average prices rise by 25% over the last 2 years. Groceries is just one example among so many, but I think youll agree its a fundamental one.

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