MPs reinstate Doug Gurr as CMA chairman but want protection from controversy and independence
MPs have endorsed Doug Gurr as the next chairman of the Competition and Markets Authority (CMA), but have warned ministers that more safeguards are needed to protect the regulator’s independence and deal with potential conflicts of interest.
In a report published on Thursday following an appointment hearing earlier this week, the House of Commons Business and Trade Committee said it was satisfied Mr Gurr had the “necessary competence and independence” to take on the role outlined by the Government. However, the committee stressed that serious concerns remained about the content of his appointment and the broad direction of competition policy.
Mr Gurr, a former Amazon chief executive, was questioned extensively by MPs about his ability to stand up for himself, particularly given the circumstances surrounding the removal of the former chair amid pressure to align the watchdog with the Government’s growth agenda. Committee members made it clear that the CMA should not prioritize investment or consolidation over consumer welfare, warning that growth will not come from competition.
MPs also expressed unease about a potential conflict of interest arising from Gurr’s long-standing employment at Amazon, one of the world’s largest technology companies and a business that could fall under the CMA’s new digital market regime. The committee recommended that ministers consider whether to withdraw from any future decision on designating Amazon with Significant Market Status under the Digital Markets, Competition and Consumer Act 2024.
The hearing was also a comprehensive examination of the CMA’s recent performance. MPs noted that staff numbers in the regulator have almost doubled over the past decade, yet competitive pressures on the UK economy have not improved. They criticized what they described as a sluggish market investigation amid a cost-of-living crisis and lax enforcement action in some high-profile cases.
Concerns were also raised about the CMA’s handling of digital competition issues, including delays in seeking remedies from Google over its relationship with news publishers and the limited commitments secured by Google and Apple over their mobile ecosystem. The committee questioned whether the watchdog was assertive enough in exercising its new statutory powers.
Internal challenges in the CMA were also highlighted. A recent budget blunder forced a 10 percent reduction in staff, and internal research suggests that only about a quarter of employees expect to stay at the organization for the next three years. Members of Parliament pointed out that rebuilding morale and confidence within the regulator will be an important task for the new chairman.
Another issue that was considered during the hearings was the time commitment associated with the role. Currently the CMA chairman is expected to devote two days a week to this position. The committee asked whether that allocation is sufficient for an administrator who works at the center of critical political and economic decisions, especially in times of crisis or great scrutiny.
Although the committee finally approved the appointment of Mr. Gurr, cautioned that it is “not a sign of a strong recruitment process” to have only one candidate for such an important role.
Liam Byrne, chairman of the committee, said the CMA sits at the heart of whether markets work for or against consumers. He said that although Mr Gurr has the professional skills to take up the job, ministers must take steps to increase confidence in the appointment.
“Growing up doesn’t mean focusing too much,” Byrne said. “Investment cannot come at the expense of consumer welfare. And the independence of labor must be protected in reality, not just in theory.”
The final decision now rests with the Business Secretary, but the committee’s report makes clear that Parliament will be looking closely to ensure that the CMA remains an independent and effective watchdog of competition in the UK economy.
