Former chair warns competition watchdog must change or lose consumer faith

Former chair, Andrew Tyrie, has blasted the Competition and Markets Authority (CMA), calling it “not fit for purpose” and urging major reform.

In a letter to the Financial Times, Tyrie (pictured) called for five changes to prevent consumers losing faith in free markets and to “reduce the rip-offs that alienate the public.” His proposed changes were:

• put more effort into finding out what is going on in markets where consumers are harmed – “The CMA should become a central repository of such data and use it to analyse where to intervene”;

• “Direct contact with its final customer – the consumer – needs to enter the CMA’s bloodstream” – at present, “the CMA engages mostly with competition lawyers and other specialists”;

• focus on cases with the greatest and most visible returns for consumers;

• “Shed its impenetrable decision-making;” and explain its choices to Parliament and the public; and

• “Press for new statutory duties to promote the consumer interest, and to act swiftly.”

Tyrie said: “A more assertive, powerful and accountable regulator, one that visibly serves the public and acts on issues they care about, is long overdue.”