CMA Consultation- Significant changes proposed to the UK mergers and markets regime

The UK Government is currently seeking responses to a consultation on significant changes proposed to the UK mergers and markets regime. The consultation, launched on 20^th January 2026, seeks feedback on a series of proposals to improve the pace, predictability, proportionality and process of engagement (the so-called 4P’s framework).

The stated aim of this consultation is to ensure that the framework continues to promote effective competition, support economic growth, and deliver benefits for consumers and businesses, while maintaining the independence of the CMA. A number of the proposed reforms, if implemented, will likely be welcome changes that increase transparency and predictability, and some of the changes are not entirely new (as they give a legislative grounding to changes already made within the CMA), but there are some which are potentially a bit more controversial.

The proposals cover the decision-making process for Phase II mergers and markets decisions, merger jurisdiction and procedural rules, the markets regime and remedies process, as well as a range of miscellaneous reforms.

The proposed reforms include:

• A new decision-making model for the markets and merger control regimes. The most significant proposal in this regard is the abolition of the CMA's independent panel system for Phase II merger and markets decisions, which is intended to be replaced by a sub-committee of the CMA Board, mirroring the Digital Markets Board Committee model already in place for the UK's digital markets competition regime.
• Simplifying and streamlining the markets regime by merging market studies with market investigations, to create a single process that must be completed in 24 months, including implementation of remedies (extendable in specified circumstances).
• Providing more time to agree remedies following Phase 1 merger investigations, to avoid the more intensive Phase 2 stage where possible.
• Clarifying the merger jurisdiction tests (increasing predictability) through a proposal to introduce exhaustive (rather than illustrative) criteria for each of the share of supply and material influence tests.
• Stronger CMA powers to investigate algorithms across its competition and consumer protection responsibilities.
• Providing the Secretary of State with a formal role in approval of a wider range of key guidance documents.

This consultation remains open to public responses until 31 March 2026 (Refining our competition regime - GOV.UK).

If you would like any further information or advice on the information mentioned within this article, please contact Kerry Teahan from the Pocurement team.

*This information is for guidance purposes only and does not constitute, nor should be regarded as, a substitute for taking legal advice that is tailored to your circumstances.