Antitrust lawyers have questioned the “unusual” decision by ministers to compel the chairman 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 evening, after the Financial Times reported that business secretary Jonathan Reynolds had intervened.
Chancellor Rachel Reeves, speaking to Bloomberg in Davos on Tuesday, bluntly criticized Bokkerink: “He has realized that it is time for him to move on and make way for someone who shares the mission and the strategic plan that the government is taking.”
This month, ministers ordered 17 of Britain's biggest regulators to explain how they intend to help grow the UK economy. But a number of lawyers and supporters said Bokkerink's resignation was out of step.
“To be honest it was amazing,” said one business consultant. “We have had many discussions with the CMA. . . and they seem to really get it and make a difference. “
One antitrust lawyer at a London firm said the move would have a “devastating and frightening effect” on independent regulators across the country.
“Although in the short term it seems to be guaranteed in business, if the competition policy is at the mercy of political fashion it is weak and predictable, which disturbs the confidence of business,” they said.
“It is an unusual move by the government to intervene so much in the competition authorities,” they added.
Bokkerink's departure raises questions about whether ministers are putting the interests of big business ahead of competing priorities such as consumer rights and the environment.
The government has appointed as the new interim chairman of the CMA Doug Gurr, who ran Amazon's UK business during the company's tenure CMA on top of its small investment in Deliveroo, which the regulator finally approved in 2020.
One person said the forced exit looked like a “bad move from a struggling government” which was trying to win back the favor of business leaders after imposing extra rules and taxes on companies last year. Budget.
The move has also led to speculation about the future of CMA chief executive Sarah Cardell and whether she could be replaced.
Andrew Griffith, the shadow business secretary, told the House of Commons on Wednesday that the Conservative party wants regulatory reform so that businesses “bear less of the burden”.
“But sacking the interim non-executive chairman of the CMA seems like an interesting place to start,” he told the House of Commons. “He is not responsible for making day-to-day decisions in the CMA. That is the job of the chief executive. Did they look and miss?”
Cardell has been at pains in recent weeks to emphasize that the governor is taking seriously the government's mandate to grow. In November, Cardell told the FT that the agency was planning a review of its medicinal propertiesreflecting more mergers may be approved based on actions such as price freezes rather than forced asset disposals.
One person familiar with the matter said Cardell has had “good discussions” about his role with ministers since Bokkerink's resignation.
Max von Thun, European director at the Center for Open Markets, said the CMA was at the forefront of global efforts to push back against increasing market pressure, particularly in the “monopolistic” technology sector.
“The decision of the government to replace the chairman of the authority with a former director of Amazon, at a time when the US technology minority is strengthening its power in the future of artificial intelligence, is a big strategic mistake,” he said.
Lawyers and competition experts have noted that Clare Barclay, until recently the head of Microsoft UK and now in another senior role in the company, is the chairman of the new Advisory Council for Business Strategy.
In a two-page statement released on Tuesday night, Bokkerink said he helped refocus the CMA to ensure it provides “consumer empowerment and effective competition – instead of being held back by a few powerful officials who dictate the rules for everyone”.
Business groups have welcomed the government's intervention. Craig Beaumont, managing director of the Federation of Small Businesses, said he hoped the CMA would “now do more for growth”, while Stephen Phipson, head of the Make UK product group, applauded the efforts of ministers to make the regulation “fit for purpose”.
One banker said the CMA was seen as an obstacle and Bokkerink's dismissal could be a way to send a message to the regulator's staff.
His exit comes as the CMA is given new powers to regulate digital markets.
It announced last week that Google will be the first company the watchdog will investigate to decide whether the tech giant guarantees a special level of market in light of its position in search services, which may see it bound by strict ethical rules.
The government is due to issue a “strategic steer” to the CMA in the coming weeks, setting out the regulator's priorities. However, beyond its desire for the watchdog to focus on growth, it was unclear what Labor actually wanted the CMA to do, lawyers said.
“It is clear that the government is not happy with the CMA but it does not seem to have a concrete view of what is wrong,” said a senior opposition lawyer.
Additional reporting by Ivan Levingston