Competition Watchdog Faces Criticism Over Slow Response To Big Tech Dominance

The UK competition watchdog has come under renewed criticism for its pace in challenging the growing influence of major US technology companies and upholding consumer rights. Lord Tyrie, former chairman of the Competition and Markets Authority (CMA), has voiced concerns over the regulator’s slow adoption of powers granted under the Digital Markets Competition and Consumers Act, now fully in force since the beginning of the year.

Despite several years of preparation, including the establishment of a shadow digital markets unit in 2021, the CMA has yet to designate any corporation with strategic market status—a move that would allow it to impose conduct rules on firms with disproportionate market power. Lord Tyrie noted his surprise at the lack of action, warning that decisive steps are required to deter anti-competitive behaviour and ensure markets remain fair for both businesses and consumers.

The CMA has initiated investigations into Apple and Google, focusing primarily on the management of their smartphone operating systems and app stores within the UK. Google also faces a separate probe regarding its online search business. Final decisions on these high-profile cases are expected in October, followed by consultations on potential regulatory interventions.

The government has recently directed the competition authority to pursue both economic growth and the safeguarding of competition and consumer rights. This “strategic reset” has prompted debate over whether the focus on growth could dilute the effectiveness of regulatory oversight, particularly when it comes to the tech giants. Critics, including the House of Lords communications and digital committee, have highlighted the risk of weakened regulation under the new approach.

The Department for Business and Trade maintains that the CMA has acted swiftly with its new statutory powers, pointing to the recent wave of investigations launched. Ministers emphasise that promoting growth, innovation and productivity can be achieved without compromising the integrity of market competition.

Recent changes to the CMA’s leadership reflect the government’s new approach, with Doug Gurr, former Amazon UK executive, now serving as interim chairman. The government remains adamant that the watchdog’s renewed approach will cement the UK’s position as a leading destination for business, promising a regulatory framework that balances entrepreneurial growth with robust protections for consumers.