A PYMNTS Company

UK and EU Forge Alliance to Strengthen Competition Regulation

By  |  October 29, 2024

The European Commission and the United Kingdom have reached a groundbreaking agreement allowing their competition authorities to directly collaborate in antitrust investigations, according to a statement from the European Commission on Tuesday. This unprecedented deal marks the first time EU national competition authorities will be able to work in close coordination with a competition regulator from outside the bloc, a move expected to streamline oversight of cross-border corporate practices.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Per Reuters, this new cooperation framework will enhance the communication of critical information on significant antitrust and merger investigations, a change expected to strengthen regulatory alignment and enforcement. Following the UK’s departure from the EU, such coordinated efforts had been limited, but this new agreement could lay the groundwork for a smoother collaboration, particularly on complex cases affecting regulation of businesses and consumers on both sides.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    The agreement, finalized after discussions concluded Tuesday, will formally take effect once both the EU and UK complete their respective ratification processes, which involve approval from EU member states, the European Parliament, and the UK Parliament. As per the European Commission, the goal of the agreement is to ensure greater cohesion in enforcing competition laws, ultimately benefiting businesses operating in Europe as well as consumers.

    Related: Incoming EU Antitrust Chief Advocates Stronger Support for European Firms

    The development comes as the UK government, led by Labour Prime Minister Keir Starmer since his party’s victory in July, aims to strengthen and reset its relationship with the EU. After a prolonged period of tension and negotiation that defined the UK’s exit from the bloc, the two sides are now actively seeking collaborative frameworks. According to Reuters, the new UK government under Starmer has been particularly focused on establishing smoother, cooperative ties with EU counterparts.

    Margrethe Vestager, the EU’s competition chief, expressed optimism about the agreement. “This agreement strengthens our relationship and will help to ensure that enforcement is coordinated between our jurisdictions, to the ultimate benefit of European businesses and consumers,” Vestager stated. Her comments underscore a renewed emphasis on effective cross-border regulation, a priority for both the UK and the EU as companies increasingly operate across national boundaries.

    The UK Competition and Markets Authority (CMA), led by chief executive Sarah Cardell, also welcomed the agreement. Cardell emphasized the importance of cross-jurisdictional dialogue, stating, “We welcome this cooperation agreement, which will allow us to work even more closely with EU competition authorities on shared cases and common competition issues – without unnecessary barriers.” This open channel for communication and mutual assistance is anticipated to make investigations more efficient, particularly in high-stakes cases involving large corporations operating within both jurisdictions.

    Source: Reuters