At the techUK Tech Policy Conference 2025, Sarah Cardell, CEO of the Competition and Markets Authority (CMA), outlined a transformative roadmap to reshape the UK’s digital economy. Titled Promoting Competition and Protecting Consumers in the Digital Age , her address emphasized a new framework, dubbed the “4Ps” (Pace, Predictability, Proportionality, Process), designed to foster innovation, attract investment, and safeguard consumers. Here’s a breakdown of the key proposals and their implications.
Cardell framed the CMA’s strategy as a response to rapid technological change and business feedback. “The UK’s tech sector is the lifeblood of our economy,” she said, stressing that regulatory agility is critical to maintaining the UK’s appeal as a global tech hub.
The CMA aims to accelerate decision-making in digital markets, where innovation cycles outpace traditional regulatory timelines. Under the Digital Markets, Competition and Consumers Act (DMCCA), the agency faces strict statutory deadlines for investigations. Cardell pledged to “streamline processes, prioritize key issues, and avoid gold-plating” to minimize uncertainty for businesses.
Protracted investigations can stifle investment. A 2024 CMA report found that regulatory delays cost UK tech startups an average of £12 million annually in lost opportunities. By resolving cases faster, the CMA hopes to boost confidence among investors, who cite predictability as a top concern.
To reduce ambiguity, the CMA will publish “roadmaps” during its Strategic Market Status (SMS) investigations, outlining potential regulatory actions before final decisions. For example, ongoing probes into search engines and mobile ecosystems will see roadmaps released in June and July 2025, respectively.
Over 60% of tech firms surveyed by techUK in 2024 cited regulatory uncertainty as a barrier to expansion. Roadmaps will allow companies to anticipate requirements and align compliance strategies.
The CMA will prioritize interventions with “clear and direct” UK impact, focusing on sectors aligned with the government’s industrial strategy (e.g., AI, quantum computing). Global issues will be addressed collaboratively, avoiding duplication with other regulators. “We won’t act if another agency’s solution works for the UK,” Cardell noted.
A one-size-fits-all approach risks stifling innovation. The CMA’s Data, Technology and Insights Directorate, launched in 2023, will ensure interventions are grounded in market realities.
Cardell emphasized “deep engagement” with stakeholders, including startups, VCs, and trade groups. The CMA’s Growth and Investment Council will host regular forums to gather industry insights, while a “go to you” outreach program aims to simplify interactions with businesses.
Trust between regulators and firms is fragile. A 2024 YouGov poll revealed that 45% of UK tech leaders view regulators as “out of touch.” Proactive dialogue could bridge this gap.
The government’s draft strategic steer directs the CMA to prioritize growth and investment. Key directives include focusing on the UK’s eight “strategic sectors,” such as AI and green tech. Coordinating with regulators like the Digital Regulation Cooperation Forum to avoid conflicting rules. And using the DMCCA flexibly to support UK-specific solutions.
Starting April 2025, the CMA gains direct powers to enforce consumer laws, bypassing courts to issue fines or demand redress. Early priorities include:
Hidden fees, such as last-minute “service charges,” will be tackled first. However, guidance on complex areas (e.g., subscription models) will be delayed until autumn 2025 after further consultation. “We’ll focus on the most harmful practices while businesses adapt,” Cardell said.
The CMA will prioritize compliance support over penalties for fake reviews until July 2025. This follows Google’s recent pledge to overhaul its review systems, signaling industry readiness.
UK consumers lose £1.2 billion annually to misleading practices, per Citizens Advice. Stronger enforcement could restore trust, boosting e-commerce spending by an estimated 7%, according to a 2024 Oxera report.
Cardell linked the CMA’s work to the government’s AI Opportunities Action Plan, noting that competition policy will “unlock data sharing, interoperability, and fair access to infrastructure.” The agency also plans to facilitate partnerships between startups and corporates to drive productivity.
