Antitrust lawyers have questioned the “extraordinary” decision by ministers to force out the chair of Britain's competition watchdog, suggesting it could have a “chilling” effect on other UK regulators.
The government confirmed the departure of Marcus Bokkerink as chairman of the Competition and Markets Authority on Tuesday night after the Financial Times reported that business secretary Jonathan Reynolds had intervened.
Speaking to Bloomberg in Davos on Tuesday, Chancellor Rachel Reeves implicitly criticized Bokkerink: “He has recognized that it is time for him to move on and make way for someone who shares the mission and the strategic direction this government is taking.
This month, ministers ordered Britain's 17 biggest regulators to set out how they intend to help boost UK economic growth. But a number of lawyers and lobbyists said Bokkerink's resignation came out of the blue.
“To be honest, it was a bit of a surprise,” said one business lobbyist. “We have been in many discussions with the CMA. . . and they seemed to really understand it and make changes.”
One antitrust lawyer at a London firm said the move would have a “chilling and chilling effect” on independent regulators across the country.
“While this seems reassuring for business in the short term, if competition policy is at the mercy of political fashion, it becomes less stable and predictable, undermining business confidence,” they said.
“It is an extraordinary step by the government to interfere so much with the competition authority,” they added.
Bokkerink's departure raises questions about whether ministers are putting the demands of big business ahead of competing priorities such as consumer rights and the environment.
The government has appointed Doug Gurr, who ran Amazon's UK business during the company's struggles with CMA over its minority investment in Deliveroo, which was eventually approved by the regulator in 2020.
One person said the forced exit appeared to be a “desperate move” by an embattled government seeking to regain popularity with business leaders after imposing more regulations and taxes on corporations last year. Budget.
The move has also led to speculation about the fate of CMA chief executive Sarah Cardell and whether she may also be replaced.
Andrew Griffith, the shadow business secretary, told the House of Commons on Wednesday that the Conservative Party wants regulatory reform so businesses “carry less dead weight”.
“But sacking a non-executive part-time chairman of the CMA seems an odd place to start,” he told the House of Commons. “He is not responsible for day-to-day decision-making at the CMA.” That's the CEO's job. Did they aim and miss?”
Cardell has been at pains to emphasize in recent weeks that the regulator is taking the government's growth mandate seriously. In November, Cardell told the FT that the agency planned a review of its merger remediessignaling more mergers could be approved based on commitments such as price freezes rather than forced asset divestitures.
One person familiar with the matter said Cardell had had “positive discussions” about her role with ministers since Bokkerink's resignation.
Max von Thun, European director of the Open Markets Institute, said the CMA was at the forefront of global efforts to curb growing market concentration, particularly in the “monopoly” technology sector.
“The government's decision to replace the chair of the office with a former Amazon executive at a time when a handful of US tech giants are consolidating their control over the future of artificial intelligence is a major strategic mistake,” he said.
Lawyers and competition specialists noted that Clare Barclay, until recently head of Microsoft's UK business and now in another senior role at the company, is chairing the government's new industrial strategy advisory board.
In a two-page statement issued on Tuesday night, Bokkerink said he had helped reorient the CMA to ensure it delivered “for consumers and effective competition – rather than being held back by a few powerful incumbents setting the rules for everyone else”.
Business groups welcomed the government's intervention. Craig Beaumont, chief executive of the Federation of Small Businesses, said he hoped the CMA would “now do more for growth”, while Stephen Phipson, head of manufacturing lobby group Make UK, applauded ministers' efforts to make regulation “fit for purpose”. .
One banker said the CMA was seen as an obstacle and that ousting Bokkerink could be a way to send a message to the regulator's staff.
His departure comes as the CMA was given new powers to regulate digital markets.
It Google announced last week would be the first company to be examined by the watchdog to decide whether the tech giant warrants a special market position given its position in search services, which could see it bound by stricter rules of conduct.
The government is due to issue a “strategic instruction” to the CMA in the coming weeks, setting out its priorities for the regulator. However, beyond its desire for the watchdog to focus on growth, it was unclear what Labor actually wanted the CMA to do, lawyers said.
“The government is clearly unhappy with the CMA, but they don't seem to have any specific views on what is wrong,” said one senior antitrust lawyer.
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