“The CMA is becoming an increasingly interventionist enforcer in global mergers and acquisitions, in particular in the tech industry,” the pair wrote in an analysis of the Microsoft-Activision decision.
At times, this has flown in the face of separate efforts by Rishi Sunak, the Prime Minister, to woo tech companies.
“Many have noted that, while Rishi Sunak is aggressively promoting a tech friendly “Unicorn Kingdom”, the CMA’s approach to technology companies is more hostile,” Morrison and Pepper said.
“Indeed, the CMA is fighting a significant number of technology cases at the moment, including a high-profile fight with Apple… and its announcement of a study into the impact of generative AI on competition.”
Ministers have cottoned on to this issue and have sent not-so-subtle signals that they would like regulators – including the CMA – to take a more sympathetic view of deals that could boost economic growth.
Michael Gove, the Levelling Up Secretary, on Tuesday became the latest cabinet minister to call for reforms to ensure regulators “have an imperative to put growth first”, while Jeremy Hunt, the Chancellor, said in May that it was “important all our regulators understand their wider responsibilities for economic growth”.
However, with a general election likely next year and the Government running out of time to pass major pieces of legislation, the prospect of an imminent shake-up seems somewhat unlikely.
Marcus Bokkerink, the CMA’s chairman, has defended the watchdog’s approach previously when challenged by a parliamentary committee.
“I understand the inference,” Bokkerink told MPs. “A decision is made that blocks a deal and then there are questions about whether the UK is open for business.
“I disagree with the premise that somehow the two are connected.
“All businesses know that there is a very big difference between building a business, investing in a new business, investing in a start-up or creating a new business, and buying an already well-established firm with established positions. The two are not the same.
“We are vigilant, as it is our duty, about investments that consolidate and entrench market power.
“I would challenge the premise that there is an impact on international confidence in doing business in the UK, and that the best way to serve that confidence is by turning a blind eye to anti-competitive mergers.”
He added that thousands of mergers and acquisitions are waived through in the UK each year, with only “a handful” being called in when “there is a real and credible risk of… anti-competitive situations”.
That may well be the case. But as entrepreneurs including Sir Jim have found, that handful can end up being very costly indeed.