UK Competition Watchdog Head Removed by Government

Government Removes Competition Watchdog Chair Amidst Growth Concerns

CMA’s Role in Supporting Government’s Growth Mission

The chair of the UK’s competition watchdog, Marcus Bokkerink, has been removed from his position by government ministers who felt that the Competition and Markets Authority (CMA) had not sufficiently demonstrated its focus on growth. This move comes as the chancellor and business secretary are trying to attract investment at the World Economic Forum in Davos.

According to government sources, the removal of Bokkerink is a signal that the government is serious about growth. The CMA has been criticized for holding up a merger between Vodafone and Three Mobile Networks, which was eventually approved. This decision has led to concerns that the CMA may be too focused on risk rather than helping drive growth.

Regulatory Barriers and Growth

The government’s desire to promote growth is not new. Last year, Prime Minister Sir Keir Starmer emphasized the importance of regulators taking growth as seriously as investors do. Chancellor Rachel Reeves has also expressed her desire for regulators to “tear down” red tape and focus on helping businesses grow.

In a statement, Bokkerink warned against competition authorities becoming vulnerable to short-term expediency or vested interests. He emphasized that his approach at the CMA was designed to promote growth through fair and effective competition by ensuring consumers and businesses have choice and that businesses can compete on a level playing field.

Criticism of the CMA

The CMA has faced criticism in the past, including from Microsoft‘s vice chair and president, Brad Smith. In 2023, he said the UK was “bad for business” after the CMA initially blocked the tech giant’s planned takeover of Activision Blizzard. However, the CMA later approved the deal after Microsoft restructured its offer.

Interim Replacement and Future Changes

Doug Gurr, a former boss of Amazon UK, will replace Bokkerink on an interim basis. Gurr has extensive experience in the private sector and is currently the director of the Natural History Museum in London. Later this year, 11 members of the CMA’s merger panel are due to step down, which may lead to further changes within the organization.

The CMA’s primary responsibility is to ensure consumers are well served by effective and fair competition. With the government’s focus on growth, it remains to be seen how the CMA will adapt to this new direction and whether it will be able to balance its role in promoting competition with the need for growth.

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