Recommendations & Conclusions
7 items
1
Recommendation
Fourth Report - Post-pandemic economic …
Accepted
The CMA is highly regarded by many practitioners and stakeholders, including internationally. In particular, the calibre and expertise of staff has been commended throughout this inquiry. However, we recognise the concerns raised in our inquiry about the level of involvement of the CMA Board and the transparency of its decision …
Government response. The CMA outlines existing mechanisms for Board involvement in decision-making, reporting, and strategic priorities, and claims they are already addressing the need for more proactive engagement and transparency.
Department for Business and Trade
2
Recommendation
Fourth Report - Post-pandemic economic …
Accepted
In the context of the Government’s stated aim to drive higher economic growth, we believe the CMA could be doing more to help stimulate economic growth in the UK by conducting more market studies in key sectors of the economy and thinking more about the role of competition in driving …
Government response. The CMA states it already considers economic growth and productivity in its work, referencing its draft Annual Plan and prioritisation principles for market studies.
Department for Business and Trade
7
Recommendation
Fourth Report - Post-pandemic economic …
Accepted
Additional compliance costs will be incurred by businesses that trade in both the EU and the UK, assuming some degree of regulatory divergence over time. We therefore call on the CMA to conduct a short economic analysis, to be sent to this Committee no later than September 2024, assessing the …
Government response. The CMA has established a new micro-economics unit in Darlington and is creating a central market intelligence and horizon-scanning function to address consumer harms beyond COVID-19, which addresses the committee's request for economic analysis and its impact on competition.
Department for Business and Trade
16
Conclusion
Fourth Report - Post-pandemic economic …
Accepted
The COVID-19 pandemic has exacerbated the negative effects of weak competition in some industries for consumers. Consumers have increasingly experienced rip- offs and asymmetry of information.
Government response. The Government agrees with the Committee’s assessment and states they plan to strengthen consumer protection law through the forthcoming Digital Markets, Competition and Consumer Bill, provides funding to Citizens Advice, and supports consumer awareness campaigns.
Department for Business and Trade
22
Recommendation
Fourth Report - Post-pandemic economic …
Accepted
Regulators and other relevant stakeholders should invest in better online arbitration systems that are quicker and cheaper, to speed up enforcement of minor consumer rights breaches. These investments should include better internal digital case management systems and other options for consumers who are unable to access online services.
Government response. The Government has committed to reform Alternative Dispute Resolution (ADR) by legislating to boost the quality and oversight of ADR services, particularly in non-regulated sectors and is exploring mediation in the civil justice system.
Department for Business and Trade
29
Conclusion
Fourth Report - Post-pandemic economic …
Accepted
Digital markets are global in nature. Therefore, many countries are required to work together to assess the risks and form an approach to tackle anti-competitive behaviour. We congratulate the CMA for its work on the Digital Markets Unit so far and its international leadership on this issue.
Government response. The Government believes the CMA has the funding it needs to carry out its functions and intends in the Digital Markets, Competition and Consumer Bill to provide powers for a levy on Strategic Market Status designated firms that partially recoups …
Department for Business and Trade
30
Recommendation
Fourth Report - Post-pandemic economic …
Accepted
Legislation is required if the Digital Markets Unit is to have the enforcement and other powers it needs to fulfil its role. We welcome the announcement in the Queen’s Speech that a Draft Digital Markets, Competition and Consumer Bill will be introduced, which will allow opportunities for scrutiny and improvement …
Government response. The Government believes the CMA has the funding it needs, and intends to provide powers for a levy on Strategic Market Status designated firms that partially recoups the cost of DMU activity in the Digital Markets, Competition and Consumer Bill.
Department for Business and Trade