Competition | UK Regulatory Outlook February 2026

Consultation launched on major competition regime reforms 

The Department for Business and Trade (DBT) on 20 January proposed a set of sweeping reforms to the Competition and Markets Authority (CMA)'s processes. 

On mergers 

The proposals would replace independent "phase two" merger panels with "sub-committees" of the CMA board comprising senior CMA staff, board members and government-appointed "expert decision makers". 

The DBT also proposes to confine the CMA's power to investigate mergers by restricting the "share of supply" and "material influence" assessments to closed lists of factors (value, cost, price, quantity, capacity or number of workers employed). 

The statutory period for "phase one" remedies would extend from 10 working days to up to 20 working days from the substantial lessening of competition, or SLC, decision. Parties must still submit proposals by day five, but the CMA may grant a five-day extension where there is reasonable prospect of a phase one resolution. 

On markets 

The proposals would replace the two-phase market study and investigation process with a single "market investigation" lasting 12-24 months.  

Other changes would include market reviews potentially extending to cover consumer issues, with a single adverse effect on consumer test proposed, and remedies requiring "sunset" clauses unless the CMA justifies otherwise, with mandatory review every ten years 

The CMA would gain powers to investigate algorithms in all contexts. This includes requiring businesses to generate algorithm information and conduct A/B testing, including the ability to alter how digital content appears to consumers as part of information requests. This aligns powers with the digital markets regime. 

These proposals aim to deliver economic growth by closing cases quickly whilst maintaining scrutiny of conduct that genuinely threaten competition. 

The consultation closes on 31 March 2026. 

See our Insight on the consultation for more detail. 

New guidance consolidated on market interventions 

The CMA published new consolidated guidance on its market regime on 3 February 2026. The regime enables the CMA to examine markets where competition may not be functioning effectively. These examinations can be prompted by complaints, government and regulatory direction or CMA discretion. Recent reviews include veterinary services, housebuilding, digital services and infant formula. The CMA may impose remedies, suggest action by others, or propose no further action. 

Under this guidance, the CMA will publish a project roadmap at the outset of each study, covering timeframes and engagement plans. Enhanced engagement includes webinars, roundtables and "teach-in" sessions. Expert panels may be assembled to expedite sector understanding. 

The guidance notes that the CMA can accept undertakings in lieu of a market investigation reference at any stage of a market study, including partial undertakings. 

Of particular interest will be remedy trials. The key points are: 

• Trials are expected to last six to twelve months depending on complexity.
• The CMA must begin a trial within six months of publication of the final report, extendable by four months.
• The CMA will consider remedy trials while it is still carrying out its investigation and is open to discussions as well as issuing trial remedies for consultation.
• This represents a crucial opportunity for affected firms to make their views heard.
• More generally, the trial process gives businesses the opportunity to demonstrate the efficacy or otherwise of particular remedies which is to be welcomed. 

The CMA proposes a number of measures to ensure that trials are efficient and proportionate, including current trials, limiting scope and potential early termination. 

While trial remedies may give an opportunity to develop more effective remedies in the long term, this comes with the caveat that complying with remedies in the short term which then change may lead to increased compliance costs. 

Other updates are largely uncontroversial and steps towards predictability are welcome. However, changes may be superseded to some extent by the DBT's January consultation proposing a single "market review tool".  

Businesses should remain aware of these developments, especially regarding trial remedies. 

What are the focus areas of the CMA's informal guidance on green agreements? 

The CMA has published its informal guidance on 3Keel's Landscape Enterprise Networks (LENs 2.0), a scheme that connects businesses with farmers to co-fund regenerative agriculture and nature-based solutions.  

The guidance, which was published on 21 January, addresses three main areas of the LENs 2.0 scheme. 

Eligibility criteria for participation 

• Criteria must not unreasonably exclude smaller businesses.
• Criteria require regular review to demonstrate ongoing objective justification.
• Pre-existing supply-side relationships must not create barriers to entry for new participants. 

Guide prices and pricing coordination 

• The infrequent (yearly) nature of trade and sharing of guide prices mitigates focal point risk.
• Guide prices should only be used where essential to carry out the agreement effectively, assessed before each use.
• Consider whether price ranges would suffice instead of specific guide prices.
• Ensure guide prices are understood to be non-binding with no disincentives for deviation.
• Scheme operators and intermediaries should not make statements to suppliers regarding the use of guide prices in practice. 

Information exchange and hub-and-spoke liability 

• Intermediaries (for example, supply aggregators) must be made aware they could act as a hub.
• Participants should only access information about other participants' purchasing to the extent necessary to understand their own purchase and associated environmental impacts.
• Risk mitigation measures include clean teams, third-party information management and aggregated or normalised information
• Scheme operators should establish conflicts-of-interest policies.
• Scheme operators must maintain transparent rules for matching demand and supply. 

CMA practice on green agreements shows increasing engagement intensity, longer timeframes and greater evidentiary burdens.  

Businesses should factor this into decisions about seeking CMA guidance. 

CMA granted latest domestic search warrant  

The Competition Appeal Tribunal (CAT) granted the CMA a warrant on 24 November 2025 to search a managing director's home in a bid-rigging investigation. The judgment was published in January of this year. The home search followed December 2024 business premises searches and demonstrates the CMA's willingness to pursue evidence at executives' homes where there is reason to suspect that personal devices hold relevant evidence.  

The CAT authorised the search after evidence showed the director misled investigators by saying he did not use his personal phone for work whereas other material revealed anti-competitive exchanges with competitors on that number. While the tribunal noted the intrusive nature of a search on a family home (and required that it be conducted at a time when school-age children would not be present), this was outweighed by the public interest in uncovering wrongdoing.  

This latest example of a warrant being granted for domestic search reinforces the importance of understanding (and perhaps limiting) the extent to which personal devices are used for work purposes. Businesses should audit use of personal devices for business communications, update "dawn raid" protocols to address home working, and review bring your own device, or BYOD, policies.  

Osborne Clarke has significant experience supporting clients with compliance and dawn raids. 

CMA publishes annual plan for 2026-27 

The CMA on 21 January published its draft annual plan for 2026-27. This is its first plan under the 2026-2029 strategy. 

The strategy prioritises promoting effective competition, champing consumers, contributing to "the U.K.'s reputation as a great place to do business and invest" and prioritising UK interests. 

Key CMA priorities for 2026-27 include: 

• Implementation of the Digital Markets, Competition and Consumers Act (DMCCA) 2024.
• Enhanced consumer protection enforcement using new direct enforcement powers.
• Continued focus on digital markets and platform regulation.
• Market work to be aligned with government growth priorities 

Businesses should look out for the final publication of the annual plan, which is now expected following the closure of the consultation on 18 February, to understand which sectors and practices will be prioritised for enforcement, the CMA's approach to implementing new DMCCA powers, opportunities for engagement and guidance from the CMA, and expected timescales for ongoing and new investigations.