Government ousts UK competition watchdog chair

The chairman of the UK's competition regulator has been replaced after government ministers felt he was not sufficiently focused on economic growth. Government sources indicated that the move was intended to signal the government’s emphasis on economic growth as the Chancellor and Business Secretary seek investment at the World Economic Forum in Davos. This comes after the Competition and Markets Authority (CMA) initially blocked the merger of Vodafone and Three mobile networks, but eventually approved the deal.

Marcus Bokkerink, who has served as CMA chairman since 2022, will be temporarily replaced by Doug Gurr, former head of Amazon UK. Last week, CMA chief executive Sarah Cardell and other regulatory heads met with Chancellor Rachel Reeves to offer suggestions on how to stimulate economic growth. It is understood that the proposals submitted by the CMA were deemed unsatisfactory. Reeves stated at the time that she wanted regulators to “tear down” red tape.

Reeves emphasized, “Every regulator, in every sector, should be playing its part by removing regulatory barriers that are holding back growth. I want to see this mission embedded in the DNA of our regulators, delivering a cultural shift from an over-focus on risk to helping drive growth.” Last year, Prime Minister Keir Starmer stated at an investor gathering, “We will make sure that every regulator in this country, particularly our economic and competition regulators, values economic growth as much as you do.”

In a statement, Bokkerink cautioned that competition authorities should not be “vulnerable to short-term expediency or vested interests.” He stated that his approach at the CMA aimed to promote fair and effective competition to drive economic growth by ensuring that consumers and businesses have choices, and that “businesses big and small can compete freely, innovate, and succeed on their merits in a level playing field.” The CMA's primary duty is to ensure that consumers have access to effective and fair competitive services.

The CMA faced criticism from Microsoft Vice Chair and President Brad Smith for initially blocking Microsoft's acquisition of gaming giant Activision Blizzard. Smith stated at the time that the UK was “bad for business” and that confidence in the UK was “severely shaken.” Subsequently, the CMA approved the $69 billion (£56 billion) deal, the largest in gaming history, after Microsoft adjusted its acquisition plan. Smith later stated that the CMA had been “rigorous and fair.”

Commenting on the change of chairman, Cardell stated, “The CMA has a critical role to play in supporting the government’s growth mission.” She thanked Bokkerink “for his leadership and support over the past two years.” Bokkerink, who was appointed by former Conservative Business Secretary Kwasi Kwarteng for a five-year term, was previously a senior partner at Boston Consulting Group, one of the world's largest management consulting firms. His interim successor, Dr. Gurr, worked at Amazon from 2011 to 2020, including two years as head of the company's China operations.

Gurr is currently the director of the Natural History Museum in London. Later this year, 11 of the 33 members of the CMA’s mergers panel will step down. The panel, appointed by the Department for Business and Trade, is comprised of independent experts who decide whether large deals can proceed in the UK. Their terms can last up to eight years.