MPs have authorized Doug Gurr as match to change into the subsequent everlasting chair of the Competitors and Markets Authority (CMA), however warned ministers that extra safeguards are wanted to guard the regulator’s independence and handle potential conflicts of curiosity.
In a report published on Thursday following a pre-appointment listening to earlier this week, the Home of Commons Enterprise and Commerce Committee mentioned it was glad that Mr Gurr has “the skilled competence and independence required” to tackle the position as outlined by the Authorities. Nevertheless, the committee careworn that severe considerations stay concerning the context of his appointment and the broader course of competitors coverage.
Mr Gurr, a former senior govt at Amazon, was questioned extensively by MPs about his potential to behave independently, notably given the circumstances surrounding the elimination of the earlier chair amid strain to align the watchdog extra carefully with the Authorities’s pro-growth agenda. Committee members made clear that the CMA should not prioritise funding or consolidation over client welfare, warning that progress can’t come on the expense of competitors.
MPs additionally expressed unease about potential conflicts of curiosity arising from Gurr’s lengthy and senior profession at Amazon, one of many world’s largest expertise corporations and a enterprise that might fall inside the CMA’s new digital market regime. The committee urged ministers think about whether or not he ought to recuse himself from any future choice about designating Amazon with Strategic Market Standing beneath the Digital Markets, Competitors and Shoppers Act 2024.
The listening to additionally turned a wider examination of the CMA’s latest efficiency. MPs famous that workers numbers on the regulator have virtually doubled over the previous decade, but aggressive pressures within the UK financial system haven’t improved. They criticised what they described as sluggish market investigations throughout the cost-of-living disaster and weak enforcement motion in sure high-profile instances.
Considerations have been additionally raised concerning the CMA’s dealing with of digital competitors points, together with delays in searching for treatments from Google over its relationship with information publishers and the restricted commitments secured from Google and Apple concerning their cell ecosystems. The committee questioned whether or not the watchdog had been sufficiently assertive in deploying its new statutory powers.
Inner challenges inside the CMA have been additionally highlighted. A latest budgeting error compelled a ten per cent discount in workers, and inside surveys counsel that solely round 1 / 4 of staff count on to stay on the organisation for the subsequent three years. MPs indicated that rebuilding morale and confidence contained in the regulator can be a major process for the brand new chair.
One other problem scrutinised throughout the listening to was the time dedication connected to the position. The CMA chair is at the moment anticipated to dedicate two days per week to the place. The committee questioned whether or not that allocation is enough for a regulator working on the centre of politically delicate and economically vital selections, notably during times of disaster or intense scrutiny.
Whereas the committee finally endorsed Mr Gurr’s appointment, it warned that it’s “not the hallmark of a strong recruitment course of” to have secured just one appointable candidate for such a important position.
Liam Byrne, the committee’s chair, mentioned the CMA sits on the coronary heart of whether or not markets work for customers or in opposition to them. He mentioned that though Mr Gurr is professionally competent to tackle the job, ministers should take steps to maximise confidence within the appointment.
“Progress can’t imply better focus,” Byrne mentioned. “Funding can’t come on the expense of client welfare. And operational independence have to be protected the truth is, not simply in principle.”
The ultimate choice now rests with the Enterprise Secretary, however the committee’s report makes clear that Parliament will probably be watching carefully to make sure that the CMA stays an impartial and efficient guardian of competitors within the UK financial system.
