EU Internal Market Sub-Committee - Brexit: Competition Inquiry

Which? welcomes this opportunity to submit evidence to the EU Internal Market Sub-Committee’s inquiry on Brexit and competition policy. We have an opportunity through the Brexit process to create a new economy, where essential markets that are currently failing consumers are reformed, and where consumers have the confidence to spend and propel growth. The UK’s approach to competition policy going forward will be a crucial element of this.
It is essential that the UK has a strong, world-leading competition authority and a robust competition regime. The current approach to competition policy in the UK broadly serves consumers well. While we do not think that any radical change of approach is needed following Brexit, the opportunity should be taken to review the current approach, particularly in light of recent inquiries into the energy and retail banking markets.
The return of competition policy to national competence will dramatically increase the workload of the Competition and Markets Authority (CMA). It is important that it has the necessary resources and expertise to ensure that important decisions, that could have wide-ranging implications for consumers, are determined as efficiently and effectively as possible. The principles that underpinned the establishment of the CMA, with its dual responsibilities for competition and consumer enforcement must also be maintained. We have concerns that its consumer enforcement role, relative to its competition one, is already weak and it has not made effective use of these dual powers. The CMA must have the expertise and resources to be able to pro-actively fulfil both responsibilities at a time when the wider consumer landscape, including Trading Standards Services, are under strain and in need of more fundamental reform.
Given the cross-border nature of trade and of businesses, close co-operation between the CMA, European Commission DG COMP and competition authorities within other member states will continue to be important. Our proximity to the EU means that many international companies will continue to operate across Europe and the UK with similar business practices. It is therefore likely that mergers or anti-competitive behaviours that affect more than one future EU jurisdiction will also affect the UK.
A post-Brexit competition co-operation agreement would be in the mutual interest of the EU and UK in order to ensure continued access to intelligence and data. Co-operation with other non-EU countries will also need to be enhanced beyond current arrangements as issues are likely to affect several markets. It is therefore critical that the CMA has strong relationships with authorities in third countries. The UK Government should also put in place the necessary transitional arrangements in relation to antitrust rules and merger control after the UK’s withdrawal.
More generally, the Government needs to pay greater attention to consumer interests as part of its negotiating position for Brexit and in considering the implications of the UK’s exit. This includes its approach to competition policy. An important signal that the Government is willing to listen to consumer views, would be to appoint a consumer body, such as Which?, to the Business Forum that is now advising Ministers on policy.

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