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The government has published a consultation setting out a range of proposals for legislative changes to the merger regime in order to ensure the regime supports the government's wider agenda for economic growth.
Last year, in response to the government's strategic steer, the Competition and Markets Authority (CMA) embarked on a programme of reform, rolling out a series of internal policy measures based on its new '4Ps' framework supporting pace, predictability, proportionality and process (see the post on our Competition Note blog here). The government recognises that the CMA is limited in how far it can go in this regard within the existing legislative framework, and the government has therefore committed to bring forward legislative proposals to refine the UK's competition regime, building on the CMA's '4Ps' initiative.
The proposals set out in the consultation include:
- Changes to the CMA's phase 2 decision making process - The government is proposing to abolish the panel decision-making process for phase 2 investigations and replace it with a new sub-committee of the CMA board that consists of CMA executives, non-executive directors, and a pool of non-CMA experts.
- Providing greater certainty around the share of supply and material influences tests - These jurisdictional thresholds are notoriously broad and vague and can make it difficult for businesses to assess whether their transactions fall within the CMA's jurisdiction.
- Allowing an extension to the timeline for phase 1 merger investigations to agree remedies - The government is proposing to extend the statutory period for the CMA to consider phase 1 remedies, which is currently up to 10 working days, to up to 20 working days. Merging parties would still have to submit their remedy proposals by working day 5, but the CMA would have discretion to grant a 5 working day extension to further develop their proposals where there is a reasonable prospect of resolving issues at phase 1.
The consultation closes on 31 March 2026.
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