UK Appoints Former Amazon Executive to Chair Antitrust Regulator, Signaling Openness to Investment
London, UK - Britain's appointment of former Amazon executive Doug Gurr to lead the Competition and Markets Authority (CMA) sends a clear message that the country welcomes investment, including from Big Tech, and is willing to adopt a more flexible stance on deal-making to facilitate growth.
Gurr's selection indicates a shift towards the less stringent regulatory approach prevalent in the United States. According to competition economist Cristina Caffarra, this move is intended to attract investment and promote innovation.
A&O Shearman competition lawyer Dominic Long predicts an increase in cross-border transactions involving UK assets.
Foreign investment is crucial for the UK economy, with estimates suggesting it created over 70,000 jobs in 2023/24. Despite a decline following the Brexit vote, the country remains a top destination in Europe.
The CMA's recent high-profile encounter with Microsoft, where it initially blocked the tech giant's acquisition of Activision Blizzard but later reversed its decision under government lobbying, has raised concerns about regulatory overreach.
Industry leaders suggest that the new Labour government is seeking to mend relationships with Big Tech after the Microsoft incident, especially in light of the Biden administration's more permissive approach in the US.
The CMA has taken a more proactive stance towards regulating the technology sector. The Digital Markets Unit is investigating Google, Apple, and cloud services from Amazon, Microsoft, and Google.
Google has defended its search business, emphasizing its role in driving economic development. However, Amelia Fletcher of Norwich Business School warns against weakening the CMA's authority over digital markets, as this could stifle competition and innovation.
The CMA is urged to maintain its regulatory independence and continue promoting growth and fair competition in the digital economy.