Streamlining the CMA’s approach to issuing directions in relation to the enforcement of market and merger undertakings and orders
The CMA is consulting on updated guidance on the process to issue directions to parties within the scope of the CMA’s markets and merger orders and undertakings.
To help businesses subject to the Competition and Market Authority (CMA)’s market and merger orders and undertakings understand how the CMA investigates breaches and enforces compliance with these orders and undertakings, the CMA published merger and market remedies guidance on 29 January 2021, following public consultation. This was the first time that the CMA had issued public guidance about its approach to enforcement of its undertakings and orders in this area.
The guidance has been helpful for both the CMA and parties subject to orders and undertakings in explaining the CMA’s approach and how it uses the specific enforcement tools currently available to it, in relation to the issuing of directions.
However, the approach set out in the guidance has in practice proven duplicative, as it involves the CMA consulting with these parties twice in relatively quick succession. The CMA is now consulting on how to improve its guidance and practice in this area.