London, January 20, 2026 — The UK government has launched a public consultation proposing legislative reforms to refine the country’s competition regime, including changes to the Competition and Markets Authority’s decision-making in mergers and markets, a new single-phase market review tool, and updated rules on market remedies.
The Department for Business and Trade said the package is intended to improve the pace, predictability, proportionality, and process of the UK framework while supporting economic growth and maintaining the CMA’s independence.
The consultation follows the CMA’s “4Ps” operational reforms under chief executive Sarah Cardell and interim chair Doug Gurr, which aim to deliver quicker and more predictable outcomes for businesses while protecting consumers.
Decision-Making Changes
A central proposal would replace Panel-led inquiry groups in Phase II merger investigations and market investigations with decision-making by sub-committees of the CMA Board. The government said the change would strengthen accountability by ensuring senior leaders who are answerable to Parliament are directly involved in key merger and markets decisions, while still retaining external expertise through a pool of non-CMA staff decision-makers.
Single-Phase Market Review Tool
The government also proposed replacing the current market study and market investigation structure with a single-phase market review tool. Under the new approach, the CMA would generally aim to conclude reviews in 18 to 24 months, backed by a statutory 24-month time limit with the possibility of a six-month extension in limited circumstances.
The consultation also seeks views on adopting a single legal test for market reviews, with the government suggesting an “adverse effect on consumers” standard to ensure the CMA can address consumer harm even where the link to competition harm may be disputed.
Market Remedies and Sunset Clauses
The proposals would require the CMA to consider sunset clauses when designing market remedies and introduce a requirement for remedies to be reviewed at least once every 10 years. The government said the changes are aimed at ensuring remedies remain fit for purpose and do not impose unnecessary compliance burdens on businesses as markets evolve.
Merger Jurisdiction and Phase 1 Remedies Timing
In merger control, the consultation proposes narrowing the CMA’s discretion under the share of supply test by limiting it to a closed list of criteria, and establishing a statutory list of factors for assessing “material influence” and de facto control in minority investment cases. The government also proposed extending the Phase I remedies timetable, allowing more time to agree undertakings and potentially avoid Phase II investigations.
Algorithm Investigation Powers, and Guidance Oversight
The consultation also proposed enhanced powers for the CMA to investigate algorithms across its competition and consumer protection functions, including requiring businesses to generate information or run tests to demonstrate how algorithms operate. It also raised the possibility of giving the Secretary of State a formal role in a wider range of CMA guidance documents.
The consultation is open until March 31, 2026.
