On 21 May 2024, the UK Government published updated guidance on the application of the National Security and Investment Act (NSIA). This includes:
When an Englishman’s Home is not his Castle: High Court reverses CAT Ruling that a “higher order of scrutiny” is Required for the CMA to Obtain a Domestic Warrant
The Competition and Markets Authority (CMA) declared victory as the High Court confirmed the standard of evidence needed to secure warrants to search domestic premises. The Competition Appeal Tribunal (CAT) had refused to grant a domestic search warrant to the CMA in connection with a cartel investigation. It held in a judgment of October 2023 (the CAT Judgment) that a “higher order of scrutiny” [1] was required for domestic warrants than for business premises warrants, in order to protect individuals’ rights to a private and family life under Art. 8 of the European Convention on Human Rights (ECHR).
The CMA Enhances Engagement with Phase 2 Merger Decision-Makers and Raises De Minimis Threshold
The Competition and Markets Authority (CMA) has adopted a revised phase 2 investigation process and published updated Guidance on the CMA’s Jurisdiction and Procedure and Exceptions to the Duty to Refer. The changes come after a period of extensive consultation and stakeholder engagement. The new rules will apply to all investigations formally opened on or after 25 April 2024 that are subsequently referred to phase 2.
FCA publishes feedback statement on data asymmetry between Big Tech and financial services firms
On 22 April 2024, the Financial Conduct Authority (FCA) published a Feedback Statement on the potential competition impacts from data asymmetry between Big Tech firms and firms in financial services. On the same day, Nikhil Rathi, the FCA’s Chief Executive, delivered a speech at the Digital Regulation Cooperation Forum on ‘Navigating the UK’s Digital Regulation Landscape’.
Fashion Retailers Agree Not To Mislead Customers With Environmental Claims as the CMA Issues Warning Against Greenwashing
On 27 March 2024, the UK Competition and Markets Authority (CMA) announced that fashion retailers ASOS, Boohoo and George at Asda (the Retailers) has signed undertakings to ensure that the environmental claims they make are accurate and clear (the Undertakings). The announcement was accompanied by an open letter to the fashion retail sector (the Letter). The Letter warns businesses to act in accordance with the CMA’s 2021 Green Claims Code and to take note of the Undertakings, or risk incurring significant monetary penalties once the Digital Markets, Competition and Consumers Bill comes into force (see our previous blog posts here, here and here). The CMA also indicated that it will be updating the Green Claims Code with specific guidance for the fashion sector.
CMA Examines UK Labour Markets Amidst Heightened Regulatory Scrutiny
On 25 January 2024, the Microeconomics Unit[1] of the Competition and Markets Authority (CMA) published a report examining competition and market power in UK labour markets (the Report). The Report is the Unit’s first published work, covering developments in the labour markets over the last two decades. Over this period, labour markets have changed significantly through the rise of flexible working and the gig economy (defined as labour services contracted through digital platforms), changes in restrictive covenants (contract clauses that restrict what workers can do after they leave their current employer), and shifts in pay-setting policies. Each of these factors has the potential to impact employer market power.[2]
Third Time’s The Charm: CAT Overturns Own Hydrocortisone Decision in Landmark Judgment
On 8 March, the Competition Appeal Tribunal (the “CAT”) handed down a third judgment in two years in
CMA to scrutinise competition in the veterinary sector
On 12 March 2024, the UK Competition and Markets Authority (CMA) provisionally decided to refer the veterinary sector
A ban on fake reviews and unavoidable hidden fees to be added to the Digital Markets, Competition and Consumers Bill
On 24 January 2024, the Department for Business and Trade announced that fake reviews and unavoidable hidden or “dripped” charges will be added to the list of banned practices under consumer law in the UK. The amendments are intended “to ensure customers can compare purchases with ease, aren’t duped by fake reviews, and have the sting of hidden fees taken away.”[1]
European Supervisory Authorities Publish Report on BigTech firms in EU Financial Services
On 1 February 2024, the European Supervisory Authorities (ESAs) published a report on a 2023 stocktaking of direct financial services offered by BigTechs[1] in the EU (the Report).
The Report highlights certain characteristics of BigTech firms, in particular various types of inter-dependencies between BigTechs’ non-financial and financial services offerings, and identifies opportunities and risks flowing from these inter-dependencies. It also records national competent authorities’ supervisory and regulatory observations as well as some initial suggestions how these could be addressed. Lastly, it states that, as a next step, the ESAs will establish a “multi-faceted data matrix” to enhance their monitoring of BigTech firms.