Antitrust lawyers have questioned the “extraordinary” decision by ministers to force the resignation of the head of Britain's competition watchdog, saying it could have a “chilling” effect on other UK regulators.
The government confirmed Markus Bukerinic has passed away As head of the Competition and Markets Authority on Tuesday evening, after the Financial Times reported that Business Secretary Jonathan Reynolds had intervened.
Chancellor Rachel Reeves, speaking to Bloomberg in Davos on Tuesday, implicitly criticized Böckerinck: “He has realized that it is time for him to move on and make room for someone who shares the mission and the strategic direction that this government is taking.”
This month, ministers ordered 17 of Britain's biggest regulators to set out how they intend to help boost economic growth in the UK. But a number of lawyers and lobbyists said Bokerenc's resignation came suddenly.
“To be honest, it was a bit of a surprise,” one trade lobbyist said. “We've had a lot of discussions with the CMA…and they seem to have really understood it and made changes.
An antitrust lawyer at one firm in London said the move would have a “chilling and chilling effect” on independent regulators across the country.
“Although it may seem reassuring for businesses in the short term, if competition policy becomes at the mercy of political fashions, it becomes less stable and predictable, undermining business confidence,” they said.
“It is an extraordinary move by the government to interfere so much with the competition authority,” they added.
Bokrinc's departure raises questions about whether ministers are prioritizing the demands of big business over competing priorities such as consumer rights and the environment.
The government appointed Doug Gore as the new interim head of the CMA, who ran Amazon's UK business during its struggle with the company. Capital Market Authority on a minority investment in Deliveroo, which was eventually approved by the regulator in 2020.
One person said the forced exit seemed like a “desperate move by a faltering government” that was trying to regain its popularity with business leaders after imposing additional regulations and taxes on companies last year. budget.
The move also led to speculation about the fate of CMA chief executive Sarah Cardell and whether she could also be replaced.
The Conservative Party wants regulatory reform so businesses bear “less weight”.
“But sacking the part-time non-executive chair of the CMA seems a strange place to start,” he told the House of Commons. “He is not responsible for making day-to-day decisions at the CMA. That is the job of the CEO. Did they aim and miss?
Cardell has been at pains in recent weeks to stress that the regulator takes the government's growth mission seriously. In November, Cardell told the Financial Times that the agency was planning to do just that Review its merger proceduresThis suggests that more mergers could be approved based on pledges such as price freezes rather than forced divestments.
One of the people familiar with the matter said Kardel had had “positive discussions” about her role with ministers since Bockierinck's resignation.
Max von Thun, Europe director at the Open Markets Institute, said the CMA was at the forefront of global efforts to address increasing market concentration, especially in the “monopolistic” technology sector.
He said: “The government’s decision to replace the head of the authority with a former Amazon executive, at a time when a handful of American technology giants are tightening their grip on the future of artificial intelligence, is a grave strategic mistake.”
Lawyers and competition specialists point out that Clare Barclay, who was until recently Microsoft's UK boss and now holds another senior position at the company, chairs the government's new Industrial Strategy Advisory Board.
In a two-page statement issued on Tuesday evening, Bokerinck said he had helped refocus the CMA to ensure it delivers empowering “consumers and effective competition – rather than being hampered by a few powerful incumbents who set the rules for everyone”.
Business groups welcomed the government's intervention. Craig Beaumont, chief executive of the Federation of Small Businesses, said he hoped the CMA would “do more now on growth”, while Stephen Phipson, chair of manufacturing lobby group Make UK, praised ministers’ efforts to make regulation “fit for purpose”. .
One banker said the CMA was seen as an obstacle, and ousting Bokerenc could be a way to send a message to the regulator's staff.
His departure comes after the Capital Markets Authority was granted new powers to regulate digital markets.
He – she Last week announced that Google It will be the first company that the watchdog will investigate to determine whether the tech giant secures a special market position in light of its position in search services, which could make it bound by a stricter code of conduct.
The government is scheduled to issue “strategic guidance” to the Capital Markets Authority in the coming weeks, outlining its priorities for the regulatory body. However, lawyers said that other than wanting the watchdog to focus on growth, it was not clear what Labor actually wanted the CMA to do.
A senior antitrust lawyer said: “The government is clearly unhappy with the CMA, but it does not appear to have specific views on the problem.”
Additional reporting by Evan Livingston
