Post-pandemic economic growth: State Aid and Post Brexit Competition Policy

Business and Trade Committee Closed Inquiry
Opened: 23 Sep 2021 Closed: 3 May 2023 Parliament page
The Business, Energy and Industrial Strategy (BEIS) Committee would like to hear the views of UK businesses on the future role that government will play in investing in industry and shaping competition policy. The views and ideas that business leaders provide will help inform the Committee as it starts work … Read more
17 Recommendations
13 Conclusions
1 Report
6 Oral sessions
2 Letters
6 Events
Activity timeline 17 events
28 Apr
2023
Report published
21 Feb
2023
Correspondence
21 Feb
2023
Correspondence
10 Feb
2023
Report published
25 Oct
2022
Report published
26 Apr
2022
Oral evidence
26 Apr
2022
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
1 Mar
2022
Oral evidence
1 Mar
2022
Formal meeting (oral evidence session) · The Wilson Room, Portcullis House
1 Feb
2022
Oral evidence
1 Feb
2022
Formal meeting (oral evidence session) · Room 6, Palace of Westminster
30 Nov
2021
Oral evidence
Oral evidence sessions 6 sessions
26 Apr 2022
View on parliament.uk
Alesha de Freitas · Department for Business, Energy and Industrial Strategy Niall Mackenzie · Department for Business, Energy and Industrial Strategy Paul Scully MP · Department for Business, Energy and Industrial Strategy Rt Hon Lord Andrew Tyrie
1 Mar 2022
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Oral evidence session
Matthew Upton · Citizens Advice Matthew Vickers · Ombudsman Services Rocio Concha · Which? Steve Ruddy · Chartered Trading Standards Institute
1 Feb 2022
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Oral evidence session
Andrea Coscelli · Competition and Markets Authority Camilla de Coverly Veale · The Coalition for a Digital Economy Dame Melanie Dawes · Ofcom Neil Ross · techUK Sunil Patel · PwC
30 Nov 2021
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State Aid and Post-Brexit Competition Policy
Isabel Taylor · Slaughter and May James Webber · Shearman & Sterling LLP Nicole Robins · Oxera Professor Sir John Vickers · Oxford University
2 Nov 2021
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Oral evidence session
George Peretz QC · Joint Working Party of UK Bars and Law Societies on Competition Law John Penrose · Home Office
26 Oct 2021
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Oral evidence session
George Peretz · Joint Working Party of UK Bars and Law Societies on Competition Law John Penrose · Home Office Professor Sir John Vickers · Oxford University
Title HC No. Published Items Response
Fourth Report - Post-pandemic economic growth: state aid and pos… HC 759 25 Oct 2022 30 Responded
Recommendations & Conclusions
30 results
1 Recommendation Accepted
Fourth Report - Post-pandemic econ…
The CMA is highly regarded by many practitioners and stakeholders, including internationally.
The CMA is highly regarded by many practitioners and stakeholders, including internationally. In particular, the calibre and expertise of staff has been commended throughout this inquiry. However, we recognise the concerns raised in our inquiry about the level of involvement … Read more
Government Response
The CMA outlines existing mechanisms for Board involvement in decision-making, reporting, and strategic priorities, and claims they are already addressing the need for more proactive engagement and transparency.
Department for Business and Trade
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2 Recommendation Accepted
Fourth Report - Post-pandemic econ…
In the context of the Government’s stated aim to drive higher economic growth, we believe...
In the context of the Government’s stated aim to drive higher economic growth, we believe the CMA could be doing more to help stimulate economic growth in the UK by conducting more market studies in key sectors of the economy … Read more
Government Response
The CMA states it already considers economic growth and productivity in its work, referencing its draft Annual Plan and prioritisation principles for market studies.
Department for Business and Trade
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3 Conclusion Acknowledged
Fourth Report - Post-pandemic econ…
The CMA is generally well regarded domestically.
The CMA is generally well regarded domestically. However, awareness of its work appears to be low in the UK, both amongst the public and amongst businesses. We agree that awareness of the CMA’s work and the value which it adds … Read more
Government Response
The CMA agrees it is important to communicate effectively and is using press notices and news stories, the 2023/24 draft Annual Plan, and the consultation process to identify and engage with a wider range of stakeholders.
Department for Business and Trade
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4 Conclusion Acknowledged
Fourth Report - Post-pandemic econ…
The increase in the CMA’s responsibilities and powers is likely to lead to a corresponding...
The increase in the CMA’s responsibilities and powers is likely to lead to a corresponding increase in its public profile, as businesses and public authorities start to engage with it, or engage more frequently. We believe that would be beneficial … Read more
Government Response
The CMA welcomes greater interest and scrutiny from parliamentary committees and is ready to engage and provide greater reporting.
Department for Business and Trade
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5 Recommendation Deferred
Fourth Report - Post-pandemic econ…
Whilst we support the increase in powers for the CMA, we also share the concern...
Whilst we support the increase in powers for the CMA, we also share the concern that there is insufficient oversight of the CMA and its performance. Additional powers must therefore come with additional accountability. This Committee will be undertaking more … Read more
Government Response
The government redirects concerns about intra-UK trade to the Office for the Internal Market (OIM), which is statutorily obligated to monitor the UK's internal market and provide annual reports.
Department for Business and Trade
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6 Conclusion Not Addressed
Fourth Report - Post-pandemic econ…
We are encouraged to learn that the CMA is satisfied that it has received adequate...
We are encouraged to learn that the CMA is satisfied that it has received adequate resources to deliver its post-Brexit responsibilities, and that it appears to have made a good start in achieving its aims. However, the incoming Chair and … Read more
Government Response
The CMA welcomes the Digital Markets, Competition and Consumer Bill. The response then discusses concentration in manufacturing industries, international trade, and collaboration with overseas consumer protection authorities.
Department for Business and Trade
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7 Recommendation Accepted
Fourth Report - Post-pandemic econ…
Additional compliance costs will be incurred by businesses that trade in both the EU and...
Additional compliance costs will be incurred by businesses that trade in both the EU and the UK, assuming some degree of regulatory divergence over time. We therefore call on the CMA to conduct a short economic analysis, to be sent … Read more
Government Response
The CMA has established a new micro-economics unit in Darlington and is creating a central market intelligence and horizon-scanning function to address consumer harms beyond COVID-19, which addresses the committee's request for economic analysis and its impact on competition.
Department for Business and Trade
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8 Recommendation Not Addressed
Fourth Report - Post-pandemic econ…
We believe that the non-binding nature of the CMA’s role when advising on subsidies which...
We believe that the non-binding nature of the CMA’s role when advising on subsidies which are referred to its Subsidy Advice Unit will be sufficient in the majority of cases. The Government should ensure that the CMA has the resources … Read more
Government Response
The CMA supports the provision of effective and accessible ombudsmen services, and looks forward to the improvements that will be delivered by the Digital Markets, Competition and Consumer Bill. The Chartered Trading Standards Institute leads on ombudsmen and codes of practice.
Department for Business and Trade
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9 Conclusion Not Addressed
Fourth Report - Post-pandemic econ…
Public authorities will need to update their understanding of the rules of the new subsidy...
Public authorities will need to update their understanding of the rules of the new subsidy control regime when it comes into force in late 2022. This includes delivery of subsidies from the UK Shared Prosperity Fund, where public authorities will … Read more
Government Response
The response describes CMA support for Online Dispute Resolution and Alternative Dispute Resolution in essential markets and work with international partners, but does not address public authorities needing to update their understanding of the rules of the new subsidy control regime.
Department for Business and Trade
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10 Conclusion Not Addressed
Fourth Report - Post-pandemic econ…
Although the UK Government has published further guidance on the implementation of subsides, there is...
Although the UK Government has published further guidance on the implementation of subsides, there is still a lack of detailed information in several areas of subsidy control guidance, which may cause uncertainty for public authorities who will need to seek … Read more
Government Response
The government's response discusses consumer law enforcement and the CMA's support for reforms, which is unrelated to the committee's conclusion about the lack of detailed information on subsidy control guidance.
Department for Business and Trade
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11 Conclusion Not Addressed
Fourth Report - Post-pandemic econ…
The UK Shared Prosperity Fund is designed differently to its predecessor EU schemes.
The UK Shared Prosperity Fund is designed differently to its predecessor EU schemes. How subsidies are allocated, therefore, is crucial to ensuring the most effective use of public funds.
Government Response
The government response discusses transparency and accountability of digital regulators, the Digital Regulation Cooperation Forum, its workplan, and opportunities for further engagement. This does not address how subsidies are allocated under the UK Shared Prosperity Fund.
Department for Business and Trade
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12 Recommendation Not Addressed
Fourth Report - Post-pandemic econ…
However, public authorities are in limbo until the Government publishes final guidance on the subsidy...
However, public authorities are in limbo until the Government publishes final guidance on the subsidy control regime. The UK Government needs to end this uncertainty by following the Scottish Government, which published guidance in September 2022, and publishing final guidance … Read more
Government Response
The government response discusses the CMA's strategic aims for its work in digital markets and ongoing activities, without addressing the need to publish final guidance on the subsidy control regime or end the uncertainty faced by public authorities.
Department for Business and Trade
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13 Recommendation Not Addressed
Fourth Report - Post-pandemic econ…
The Government should update the Committee within one year of implementation on the performance of...
The Government should update the Committee within one year of implementation on the performance of the new subsidy control regime. (Paragraph 106) Consumer Policy
Government Response
The CMA will continue to build the Digital Markets Unit, tackle market dominance and support the UK Government in its work to bring forward the Digital Markets, Competition and Consumers Bill.
Department for Business and Trade
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14 Recommendation Acknowledged
Fourth Report - Post-pandemic econ…
We therefore request that the Government gives an early indication of the extent to which...
We therefore request that the Government gives an early indication of the extent to which it expects to use its power under Clause 17 of the Retained EU Law (Revocation and Reform) Bill as introduced, and of the likely volume … Read more
Government Response
The government discusses the Digital Markets, Competition and Consumers Bill and its benefits, but does not provide an early indication of the extent to which it expects to use its power under Clause 17 of the Retained EU Law (Revocation and Reform) Bill, or the likely volume and rate of flow of draft legislative reform orders.
Department for Business and Trade
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15 Recommendation Not Addressed
Fourth Report - Post-pandemic econ…
Weak competition and consumer policy will lead to detriment for consumers and worse economic outcomes,...
Weak competition and consumer policy will lead to detriment for consumers and worse economic outcomes, particularly for the most vulnerable in society. We 50 Post-pandemic economic growth: state aid and post-Brexit competition policy encourage Ministers to build upon existing UK … Read more
Government Response
Departments will prepare their responses to the REUL Bill individually and keep the Parliamentary Business and Legislation Committee advised. Updated guidance will be developed and shared at the appropriate moment, and the Government will give the BEIS Select Committee early notice of the intended use of LROs as part of the REUL reform programme where relevant.
Department for Business and Trade
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16 Conclusion Accepted
Fourth Report - Post-pandemic econ…
The COVID-19 pandemic has exacerbated the negative effects of weak competition in some industries for...
The COVID-19 pandemic has exacerbated the negative effects of weak competition in some industries for consumers. Consumers have increasingly experienced rip- offs and asymmetry of information.
Government Response
The Government agrees with the Committee’s assessment and states they plan to strengthen consumer protection law through the forthcoming Digital Markets, Competition and Consumer Bill, provides funding to Citizens Advice, and supports consumer awareness campaigns.
Department for Business and Trade
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17 Recommendation Deferred
Fourth Report - Post-pandemic econ…
We commend the CMA for its COVID-19 Taskforce which was effective in improving consumer rights...
We commend the CMA for its COVID-19 Taskforce which was effective in improving consumer rights in several industries. However, we believe that this taskforce was disbanded prematurely. We ask the CMA to establish an horizon scanning unit that pro-actively engages … Read more
Government Response
The CMA will be responding separately, deferring the response to a later date.
Department for Business and Trade
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18 Conclusion Deferred
Fourth Report - Post-pandemic econ…
We welcome the Government’s recent proposals to increase the CMA’s ability to fine businesses that...
We welcome the Government’s recent proposals to increase the CMA’s ability to fine businesses that abuse their market position, by reducing the minimum turnover threshold for immunity from financial penalties from £50 million to £20 million and imposing penalties of … Read more
Government Response
The CMA will be responding separately.
Department for Business and Trade
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19 Conclusion Acknowledged
Fourth Report - Post-pandemic econ…
We believe that lower thresholds and higher penalties are necessary so that bigger businesses which...
We believe that lower thresholds and higher penalties are necessary so that bigger businesses which break the rules do not see financial penalties as a small business cost.
Government Response
The government states its commitment to taking forward changes related to lower thresholds and higher penalties, and mentions that the Bill will be introduced in this Parliamentary session.
Department for Business and Trade
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20 Recommendation Acknowledged
Fourth Report - Post-pandemic econ…
We are concerned that the Draft Digital Markets, Competition and Consumer Bill is yet to...
We are concerned that the Draft Digital Markets, Competition and Consumer Bill is yet to be published, not least because a period of pre-legislative scrutiny is envisaged, and we therefore call on Ministers to publish the draft bill as soon … Read more
Government Response
The Government is committed to introducing the Digital Markets, Competition and Consumer Bill in this Parliamentary session.
Department for Business and Trade
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21 Recommendation Acknowledged
Fourth Report - Post-pandemic econ…
We support the idea that there should be more accessible support for consumers across the...
We support the idea that there should be more accessible support for consumers across the UK. We encourage the development of ombudsman services, including in sectors not currently covered by an ombudsman, as an independent and trusted arbiter that consumers … Read more
Government Response
The Government states that it is committed to taking forward changes, and that the Bill will be introduced in this Parliamentary session, regarding accessible support for consumers.
Department for Business and Trade
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22 Recommendation Accepted
Fourth Report - Post-pandemic econ…
Regulators and other relevant stakeholders should invest in better online arbitration systems that are quicker...
Regulators and other relevant stakeholders should invest in better online arbitration systems that are quicker and cheaper, to speed up enforcement of minor consumer rights breaches. These investments should include better internal digital case management systems and other options for … Read more
Government Response
The Government has committed to reform Alternative Dispute Resolution (ADR) by legislating to boost the quality and oversight of ADR services, particularly in non-regulated sectors and is exploring mediation in the civil justice system.
Department for Business and Trade
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23 Conclusion Acknowledged
Fourth Report - Post-pandemic econ…
We believe that UK consumers are experiencing significant consumer detriment as a result of the...
We believe that UK consumers are experiencing significant consumer detriment as a result of the behaviour of a number of airlines. We agree with the Transport Committee that the CAA’s current powers are not adequate to protect consumers’ rights in … Read more
Government Response
The Government agrees that a well-functioning ADR system supports consumers and businesses, and is planning to improve the consistency and quality of ADR services by legislating to mandate accreditation of ADR providers and strengthening the monitoring framework.
Department for Business and Trade
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24 Recommendation Acknowledged
Fourth Report - Post-pandemic econ…
We support the Transport Committee’s recommendations in its UK aviation: reform for take-off Report of...
We support the Transport Committee’s recommendations in its UK aviation: reform for take-off Report of the 2021–22 Session, on the need for the Civil Aviation Authority to have the power to impose financial penalties on airlines which fail to refund … Read more
Government Response
The Government has committed to reform the CMA's powers as a priority in the Digital Markets Competition and Consumer Bill. Government will keep the case for extending similar direct enforcement powers to sectoral regulators under review.
Department for Business and Trade
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25 Conclusion Acknowledged
Fourth Report - Post-pandemic econ…
We acknowledge that the UK approach to digital markets regulation will be different to that...
We acknowledge that the UK approach to digital markets regulation will be different to that of the EU. However, we welcome EU efforts to increase competition and ensure a level playing field for all digital companies. We support updates to … Read more
Government Response
The government has committed to reform the CMA’s powers as a priority in the Digital Markets Competition and Consumer Bill. Government will keep the case for extending similar direct enforcement powers to sectoral regulators under review.
Department for Business and Trade
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26 Conclusion Acknowledged
Fourth Report - Post-pandemic econ…
We agree with the recommendations of the Joint Committee on the Online Safety Bill and...
We agree with the recommendations of the Joint Committee on the Online Safety Bill and the House of Lords Communications and Digital Committee, that the Digital Regulation Co-operation Forum (DRCF) should have a more formal status and clearer lines of … Read more
Government Response
The government states that the UK and EU approaches to digital competition both seek to tackle many of the same issues, but the UK regime will be more targeted and evidence-based. The government believes it is important that regulatory approaches globally are complementary and support the growth of digital companies and technologies.
Department for Business and Trade
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27 Recommendation Acknowledged
Fourth Report - Post-pandemic econ…
However, we do believe that the Digital Regulation Co-operation Forum’s accountability arrangements need to be...
However, we do believe that the Digital Regulation Co-operation Forum’s accountability arrangements need to be updated. Until such time as these arrangements are formally agreed, the DRCF should proactively report to this Committee about the delivery of its objectives and … Read more
Government Response
The government acknowledges the importance of the Digital Regulation Cooperation Forum (DRCF) and its role in digital regulation, welcomes steps taken to strengthen external engagement, but stops short of mandating that the DRCF proactively report to the Committee about the delivery of its objectives and any key decisions.
Department for Business and Trade
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28 Recommendation Acknowledged
Fourth Report - Post-pandemic econ…
There are clear examples of market dominance in digital markets globally which have been well...
There are clear examples of market dominance in digital markets globally which have been well documented. We heard from witnesses, and during our visit to the US, strong evidence of abuses of market dominance which warrant intervention. We encourage the … Read more
Government Response
The government acknowledges the role of the Digital Regulation Cooperation Forum (DRCF) and welcomes their work, including publications and engagement with stakeholders. They will continue to work with the DRCF and parliamentarians.
Department for Business and Trade
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29 Conclusion Accepted
Fourth Report - Post-pandemic econ…
Digital markets are global in nature.
Digital markets are global in nature. Therefore, many countries are required to work together to assess the risks and form an approach to tackle anti-competitive behaviour. We congratulate the CMA for its work on the Digital Markets Unit so far … Read more
Government Response
The Government believes the CMA has the funding it needs to carry out its functions and intends in the Digital Markets, Competition and Consumer Bill to provide powers for a levy on Strategic Market Status designated firms that partially recoups the cost of DMU activity.
Department for Business and Trade
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30 Recommendation Accepted
Fourth Report - Post-pandemic econ…
Legislation is required if the Digital Markets Unit is to have the enforcement and other...
Legislation is required if the Digital Markets Unit is to have the enforcement and other powers it needs to fulfil its role. We welcome the announcement in the Queen’s Speech that a Draft Digital Markets, Competition and Consumer Bill will … Read more
Government Response
The Government believes the CMA has the funding it needs, and intends to provide powers for a levy on Strategic Market Status designated firms that partially recoups the cost of DMU activity in the Digital Markets, Competition and Consumer Bill.
Department for Business and Trade
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Government Response AI assessment · 30 of 17 classified
Accepted 7
Acknowledged 12
Deferred 3
Not Addressed 8
Total 17 recs + 13 conclusions
Correspondence 2 letters
21 Feb 2023 To committee Letter from the Secretary of State for Energy Security and Net Zero relating to state aid, 16 February 2023
Parliament page
21 Feb 2023 To committee Letter from the Chair to Secretary of State on state aid rules, 16 January 2023
Parliament page