In a groundbreaking move, the UK’s antitrust watchdog, the Competition and Markets Authority (CMA), announced significant alterations to its approach to in-depth merger investigations, a strategy termed “frontloading”. This development, effective immediately, aims to expedite and streamline the probing process.
UK Antitrust Arm Frontloads In-Depth Merger Probes: Streamlining Phase 1 and Phase 2 Investigations
Previously, the CMA commenced its detailed Phase 2 investigations with an “issues statement”. Under the new guidelines, this initial step has been eliminated. Now, potential critical issues will be identified during the Phase 1 investigations, which had traditionally been restricted mainly to gathering feedback on possible competitive concerns triggered by proposed mergers.
Enhanced Engagement and Swift Decisions
Joel Bamford, the CMA’s Executive Director for Mergers, emphasized the successful outcomes of the last decade’s Phase 2 merger investigations. However, he acknowledged the importance of continuous improvement based on stakeholder feedback. The revised procedure promises more dynamic decision-making. Early and more informal interactions, including meetings and update calls, are now prioritized, allowing for quicker resolutions and discussions regarding possible solutions to antitrust issues.
