Competition and Markets Authority

The Competition and Markets Authority (CMA) is the UK’s primary competition regulator and consumer protection body. It is independent from central government and its main role is to ensure that markets work well for consumers, businesses and the wider economy. 

The CMA investigates mergers that could restrict competition, conducts market-wide studies, and takes enforcement action against suspected anti-competitive behaviour and breaches of consumer law. The CMA holds significant powers, including the ability to block mergers and impose fines of up to 10% of a company’s global turnover, together with other remedies. 

For entrepreneurs, the CMA’s work is important throughout the lifecycle of a startup. As a startup begins to scale, the CMA should in principle help maintain a level playing field in the markets where it operates. As part of this, a startup can report larger rivals for suspected anti-competitive conduct, although the CMA only prioritises cases considered to be high-impact and investigations can be lengthy. A startup will also itself be subject to competition and consumer law, and the CMA produces practical guidance to help businesses remain compliant. Finally, if entrepreneurs intend to realise their investment and exit via a sale, the CMA may also be involved in assessing this transaction using its merger control powers.

Recent reforms have expanded the CMA’s role. The recent Digital Markets, Competition and Consumers Act 2024 gives the CMA tailored powers to regulate major tech firms that are designated with ‘Strategic Market Status’. This new regime is designed to promote competition and innovation in fast-moving digital markets.

Further reading

• GOV.UK — About Competition and Markets Authority

• British Business Bank — Introduction to the Competition and Markets Authority (CMA)