The CMA is seeking a more active role in scrutinising and tackling anti-competitive behaviour by US tech giants.
Background: The rise of big tech has been one of the main challenges for antitrust authorities worldwide in recent years. The European Commission has led the way with several cases, and there have been wider debates about changing the foundations of competition policy to adapt to the new reality (e.g. the FTC’s hearings in the US). As the UK leaves the European Union, the country’s Competition and Markets Authority will set out its own approach to future competition policy.
Taking back control: On 3 February, the CMA’s CEO Andrea Coscelli told the Financial Times that the authority will push for tougher powers to go after tech giants such as Google and Facebook after Brexit. The regulator will aim to be able to impose fines on companies engaging in behaviour that is harmful to consumers, without having to go through courts as it is currently the case. It will also push for the power to stop alleged anticompetitive conduct while investigations are ongoing. “The upside is that you take back control – genuinely – of the decisions”, Coscelli said.
The models to look at: Because of Brexit, the CMA will play a more active role in global antitrust cases, some of which will have been the domain of the European Commission until now. The new benchmark for the CMA could now be the authorities of countries such as Australia, Brazil, and Canada as “well-resourced, highly competent” authorities in sizeable markets, which work alongside US and European agencies.
How far is the CMA likely to go? Coscelli touched on the CMA’s recent decision to investigate Amazon’s investment in Deliveroo, which was criticised by a group of investors. He insisted that the regulator will have a “reasonably pro-business approach”, but also noted that certain deals create strong barriers to market entry. It is likely that, not long into its post-Brexit life, the CMA will have to find a balance between preserving competition and allowing companies to grow in scale to facilitate investment. This will be particularly important in view of a likely trade deal between the UK and the US. Much of the answer will depend on the powers that new legislation will actually grant to the CMA.
