‘It’s a clear message’: Reeves’ CMA scalp fires warning to regulators
The government has sent a “clear message” to UK regulators by ousting the chair of competition watchdog, in what lawyers described as the “most overtly political” regulatory intervention of recent years.
Marcus Bokkerink, who joined the Competition and Markets Authority (CMA) in 2022, was forced out of his role due to a “different approach” on economic growth, the Chancellor Rachel Reeves said at Davos.
A former Boston Consulting Group executive, Bokkerink has overseen an interventionist two years at the regulator in which it has clashed with executives and Westminster over decisions to block high profile deals, most notably the tie-up between Microsoft and Activision Blizzard in 2023. It later approved the deal after concessions were made.
Speaking to business leaders at the government’s International Investment Summit last year, Keir Starmer singled out the CMA and said the body needed to “take[..] growth as seriously as this room does.”
While Reeves and Starmer made have ramped up pressure on regulators in recent months, the decision to oust Bokkerink shocked City advisers last night and signalled a firmer approach to regulatory oversight.
“This is a significant step by the UK government and one that is highly unusual,” said Peter Harper, head of competition and antitrust at law firm Eversheds Sutherland. “While the CMA has made a concerted effort to show how it does contribute to economic growth, this is a clear message from the UK government that it wants more to be done to reduce regulatory barriers to investment.”
After it was criticised in November, the CMA looked to assuage concerns over its approach and pledged to adopt softer behavioural remedies on mergers rather than forcing firms to sell off assets.
In response to a letter from the government on Christmas Eve, in which Reeves and Starmer requested proposals for growth, the CMA said it was “fully supportive of the government’s focus on driving economic growth” and “stood with [them] in this critical shared endeavour”.
However, City lawyers at CMS said the regulator largely produced a “repackaged” version of its annual plan and failed to include “concrete proposals” for growth.
“This is perhaps the most overtly political move we have seen in recent times,” said Jacqueline Vallat, a competition partner at law firm CMS.
“The move shows a clear intention to hold regulators’ feet to the fire on supporting growth – perhaps a little unfairly given that regulators can only act within their regulatory remit.”
The CMA defended Bokkerink’s record yesterday, claiming he had successfully delivered on the goals set out when he took on the role.
“He has tirelessly championed consumers, competition and a level playing field for business, as well as being steadfastly committed to openness and stakeholder engagement across the UK,” CMA chief executive, Sarah Cardell, said in a statement.
Former Amazon executive, Doug Gurr, has been appointed interim chief of the watchdog.