The CMA has published its second assessment of how well competition is working in the UK and what that means for people and businesses
Effective competition helps make sure shoppers and households get a fair deal when buying goods and services. This is especially important at a time when the UK is recovering from the COVID-19 pandemic and facing a rising cost of living.
Recognising the importance of competition, the Chancellor and the Business Secretary asked the Competition and Markets Authority (CMA) to assess the state of competition in the UK economy.
This is the second report of its kind that the CMA has produced.
Building on its first report, the CMA has improved the techniques it uses to measure indicators of competition like market concentration, firms’ profitability and markups, and market entry and exit levels.
Key findings include:
In its report, the CMA also analyses surveys which asked people about their direct experience of problems with goods and services they purchased. The BEIS Consumer Protection Study 2022 estimates that issues with purchased goods and services cost UK consumers £54.2 billion in the year to April 2021, with two-fifths of issues arising from just four sectors: renting services, vehicle maintenance and repair, second-hand vehicles, and internet provision.
Consumers reported that around £7.7 billion of this cost (14% of the total) was caused by the Covid-19 pandemic.
The pandemic was also felt to have played a large part in the majority of issues people experienced with services provided by airlines and package holidays and tours sectors.
Mike Walker, Chief Economic Adviser at the CMA, said:
The CMA’s report is informed by its knowledge of markets and work enforcing consumer and competition law. It has also included insights of outside experts, academic advisors and other parts of government.
For more information, and to read the report, visit the State of UK Competition report page.
For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.
Notes to Editors