UK's principal competition regulator in focus
As of April 2026, the UK government is managing the economic and diplomatic fallout from the US-Israel war on Iran, which has disrupted global oil supplies via the Strait of Hormuz. Prime Minister Sir Keir Starmer faces strained relations with US President Donald Trump over UK non-involvement in offensive strikes. The government is implementing targeted cost-of-living support, including a £1 billion Crisis and Resilience Fund and energy price cap reductions, while urging de-escalation and closer ties with Europe.
Retail crime, rising energy costs, and geopolitical tensions are impacting UK retailers. Despite efforts to control prices, companies report increased costs and uncertain profits. The government is responding with police recruitment and legislation to address retail crime, while energy and supply chain issues continue to challenge the sector.
The CMA reports fuel margins have remained broadly steady since late February, with March showing margins near last year’s high levels. While some retailers have seen elevated margins, the watchdog says the overall picture is consistent with ongoing pressure from Middle East turmoil on wholesale costs. The RAC Foundation estimates drivers have shouldered substantial extra costs across petrol and diesel since the conflict began.
The UK Competition and Markets Authority has begun a fourth investigation under its new powers to assess whether Microsoft’s bundled software—including Windows, Word, Excel, Teams and Copilot—reduces competition. The CMA is also examining how AI competitors integrate with Microsoft’s business software and whether cloud licensing practices hinder competition. The review is due to conclude by February 2027.
The government has signalled it is considering voluntary price caps on essential groceries and is offering incentives to supermarkets, including easing packaging rules and delaying healthy-food changes. The moves follow Labour-backed measures and CMA reforms, with ministers saying they want to keep costs down for families amid ongoing inflation and global supply pressures.
The Treasury has sparked debate by discussing voluntary price caps on essentials, with M&S and other retailers pushing back. Ministers deny plans for mandatory caps while signaling potential measures to ease costs, amid ongoing inflation and competition in grocery markets.
England’s 30-hour funded childcare has saved families money, but providers’ extra charges for meals, nappies and add-ons are prompting a CMA review. The education secretary has asked for details on the impact of these charges on parents and providers, while a government tool maps local providers to simplify access.
The UK CMA has required Google to give publishers tools to opt out of content being used to power AI features and to ensure clear attribution in AI-generated search results. The move strengthens publishers’ bargaining power and aims to boost trust in AI search, with a nine-month compliance window.
The U.S. Department of Justice has approved Paramount Skydance’s proposed acquisition of Warner Bros. Discovery after an eight‑month probe, concluding the merger is unlikely to harm competition in streaming, linear TV or theatrical film markets. The transaction still faces reviews by U.K. and EU regulators and possible lawsuits from state attorneys general.
Britain’s CMA is investigating Ryanair’s mandatory family-seat fee, assessed at around £8 per flight, to seat parents with children aged 2-11, amid concerns it may be unfair under consumer law and could involve drip pricing. Ryanair defends the policy as compliant and cost-saving for families.
The Competition and Markets Authority has fined StubHub UK nearly £900,000 for drip pricing, ordering refunds to more than 50,000 customers with an average payout of £10 per transaction. The company has admitted the breach and is ending the practice, with Viagogo also under investigation and an update due this summer.
Ryanair has adjusted its family seating policy following an CMA investigation. Adults travelling with children will no longer be charged to sit with their kids; free parent seats will be allocated at the back of the aircraft. The CMA continues to assess compliance, while Which? Travel welcomes the move as a step toward fairer treatment.
Britain’s biggest housebuilders are facing a multibillion-pound class-action lawsuit after accusations they colluded on pricing, harming more than 700,000 buyers of new-build homes between 2015 and 2026. The claim seeks up to £4.5bn in compensation, with per-home payments estimated at £3,100-£6,200. The Competition Appeal Tribunal must approve the case before it proceeds.
The UK Competition and Markets Authority is consulting on rules to allow app developers to steer users away from Apple and Google’s payment systems. The move aims to boost competition by lowering platform fees and potentially passing savings to UK customers.
Culture secretary has said she is minded to intervene in the Paramount-WBD merger on public-interest grounds, triggering regulatory scrutiny by Ofcom and the CMA. A final decision has not been taken; Paramount and WBD face a response deadline, with potential timelines extending into Q3 2026.