United Kingdom

CMA Activity

In 2019, the CMA devoted considerable resources to preparing for the UK’s exit from the EU. It carried out a consultation and published guidance on the functions of the CMA after a ‘no deal’ exit from the EU. In anticipation of its increased workload, it recruited additional staff at all seniority levels and completed its move to new premises in Canary Wharf. It also increased its focus on digital markets and took a less permissive approach to gun-jumping and failures to provide full responses to formal requests for information.

On 13 November 2019, the High Court upheld a judicial review challenge to Ofgem’s decision on the implementation of a tariff cap and the calculation of the wholesale energy cost allowance for the first period of the price cap (Q1 2019). The CMA investigated the energy supply market in June 2016 and concluded that there was ineffective competition in the energy supply market, which had resulted in higher default tariffs being charged to customers.

On 3 October 2019, the CMA accepted commitments ending part of a two-year investigation into Aspen, a pharmaceutical producer.[1] These commitments include an undertaking never previously employed by the CMA to compensate victims of the alleged anti-competitive conduct without the need for private enforcement. The investigation is ongoing in respect of market sharing agreements that the CMA alleges Aspen has entered into with Tiofarma and Amilco.

There is a global trend of increasingly burdensome demands by competition authorities conducting merger review for the submission of merging parties’ internal documents, and the CMA is no exception. In recent months the CMA has also taken greater steps to enforce such requests, in particular by fining companies for failing to comply with formal requests for documents under Section 109 of the Enterprise Act 2002 (“Section 109 Notices”).