ACCA ICAEW Business, Technology and Finance Practice Exam 2025 – Complete Study Resource

The Competition and Markets Authority (CMA) is the entity responsible for regulating competition in the UK. This governmental organization was established in 2013, taking over many of the responsibilities previously held by the Office of Fair Trading (OFT) and the Competition Commission. The CMA's main duties include promoting competition for the benefit of consumers, preventing anti-competitive behavior, and investigating mergers that may significantly reduce competition.

The CMA has the authority to enforce competition law and can undertake market investigations, which allows it to assess whether competition is effective in specific markets and recommend measures to enhance it if necessary. Its role is crucial in ensuring a competitive marketplace that fosters innovation, efficiency, and a variety of choices for consumers, thus supporting overall economic growth.

The other entities, while related to regulatory and market functions, do not have the same comprehensive scope regarding competition. For instance, the Financial Conduct Authority (FCA) primarily oversees financial markets and firms, focusing on protecting consumers and maintaining market integrity rather than directly regulating competition across all sectors. The Office of Fair Trading (OFT) was replaced by the CMA and is no longer operational in its previous capacity. The European Competition Commission, while active in regulating competition at the EU level, does not govern UK competition laws