Ministers launched a root and branch review of the effectiveness of competition in Britain on Wednesday, February 5, with a view to improving how markets function, driving up productivity growth and stopping companies from ripping off customers, reported the Financial Times.
Commissioning the Competition and Markets Authority (CMA) to undertake an annual assessment on the state of competition, chancellor Sajid Javid and business secretary Andrea Leadsom said the review would provide “valuable evidence” on areas where competition was failing.
Their hope is that once ministers and policymakers know where competition is undermining fair and effective markets, the CMA would intervene or the government would legislate to rectify problems as part of the government’s drive to stamp out bad business practices.
Where competition is lacking, companies find it easier to raise prices, profit margins usually increase and they feel less pressure to drive efficiencies or boost productivity.
The review will investigate areas of concern regarding the competitive outlook and consumer protection because the UK already scores highest among advanced economies on regulatory barriers to competition according to the OECD, the Paris-based organisation.
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
