Antitrust, Regulatory & Trade newsletter: your Q1 2026 update

Welcome to our quarterly newsletter where the Ashurst Antitrust, Regulatory and Trade Team recaps some of the key developments of Q1 2026.

This edition highlights:

• Key themes in Australia, the EU and the UK for technology companies. The snapshots prepared by our multidisciplinary team cover: AI, privacy, data, cybersecurity, online safety, consumer protection, ex ante regulation, competition law, foreign investment, telecommunications, connectivity and data centres.
• The UK Government's consultation on refining the UK competition regime, which includes proposals to reform the decision-making process for market and merger investigations, as well as proposals to amend the share of supply and material influence thresholds and to streamline the markets tool into a single-phase process. 
• The Australian Commonwealth Government has passed legislation which doubles the maximum fixed penalty for breaches of competition and consumer law from AUD 50 million to AUD 100 million per contravention.
• European competition authorities ongoing focus on no-poach agreements following the European Commission's Delivery Hero / Glovo decision in June 2025.
• Practical guidance on how to ensure your pricing complies with the UK Digital Markets Competition and Consumers Act 2024 (DMCC Act) and the Competition and Markets Authority's (CMA) current expectations.

Digital

1. What's ahead 2026 – Technology industry in Australia

Digital platforms, online content providers and other businesses active in the digital economy continue to face an increasingly complex and evolving regulatory and legal landscape in Australia.

2026 is shaping up as a year of global disruption and regulatory divergence, as the US and EU appear to move in opposite directions on tech oversight. In Australia, key themes to watch include significant AI-fuelled investment in infrastructure, a pragmatic regulatory approach under the National AI Plan, heightened merger scrutiny under the new mandatory regime, momentum in private litigation, and a laser focus on online safety and consumer harm.

To help you stay on top of the key developments, our multi-disciplinary team has created a snapshot of significant emerging themes, incoming reforms, and cases to watch this year.

2. What's ahead 2026 – Technology industry in the EU and UK

In 2026, businesses in the technology sector face a rapidly evolving landscape in the EU and UK. Global disruption and regulatory divergence, unprecedented investment in infrastructure fuelled by AI, heightened merger scrutiny and a surge in private legal actions are shaping a complex environment where innovation, compliance and risk management must be carefully balanced.

To help you stay on top of the key developments, our multi-disciplinary team has created a snapshot of our analysis of the key themes. 

3. Free agent? Not quite… new UK guidance on agentic AI for businesses

On 9 March 2026, the CMA published new guidance on how businesses should ensure compliance with UK consumer protection law when using AI agents, alongside a detailed policy paper examining how agentic AI could transform consumer markets. The CMA's latest guidance makes clear that consumer protection law, and the CMA's direct enforcement power (under the DMCC Act) to impose fines of up to 10% of a company's global turnover for breaches (including for misleading practices), applies whether claims or practices are delivered by humans or AI systems. See our March 2026 update.

Antitrust

1. Supreme Court overturns opt-out ruling in FX class action

The UK Supreme Court has unanimously allowed an appeal by the defendant banks in the foreign exchange (FX) collective action by endorsing a judgment of the Competition Appeal Tribunal (CAT) to certify Mr Evans' claim as an opt-in action.

Notably, the Supreme Court endorsed the CAT's decision to regard the weakness of the claim as a material factor in refusing to certify it on an opt-out basis. The Supreme Court also provided additional guidance on how the concept of "practicability" should be approached when assessing whether a claim should be brought as opt-in action. In addition, the Court clarified that evidence obtained in earlier proceedings or regulatory findings concerning different parties will generally be inadmissible in subsequent proceedings before the CAT. See here.

2. FCA, PSR and CMA deprioritise enforcement action for VRPs

On 20 January 2025, the FCA and PSR published a "prioritisation statement" which confirms that they will not open investigations under Chapter I of the Competition Act 1998 into the pricing arrangements proposed by the UK Payments Initiative in the context of Wave 1 / Phase 1 of its commercial Variable Recurring Payments (VRPs) scheme – an innovative payment method enabled by Open Banking.

The CMA has confirmed that it will adopt the FCA's and PSR's approach as set out in the prioritisation statement. This is only the second time that UK competition regulators have published a prioritisation statement. See our January 2026 update.

3. No-poach agreements in the crosshairs: antitrust enforcement takes aim

Competition authorities across the European Union have dramatically expanded antitrust enforcement into labour markets, targeting no-poach and wage-fixing agreements with unprecedented intensity. Since the European Commission's Delivery Hero / Glovo decision in June 2025, there has been a wave of national enforcement with competition authorities imposing fines in France (EUR 29.5 million) and Romania (EUR 32.15 million) and ongoing investigations in Portugal, Italy and the Netherlands. No sector is immune: enforcement actions span diverse industries from food delivery and automotive to IT consulting and sports broadcasting. See our March 2026 update.

4. MFN wake-up call: platforms and energy under antitrust scrutiny

Price parity clauses (also known as most favoured nation (MFN) clauses or best price clauses) have become one of the highest-priority enforcement targets in European competition law. These clauses (which require suppliers to offer a platform terms at least as favourable as those available through any other sales channel) can restrict price competition, raise barriers to entry for rival platforms, and ultimately harm consumers. The regulatory framework has evolved significantly in recent years with the revised EU Vertical Block Exemption Regulation and the Digital Markets Act which explicitly prohibits MFN clauses by designated gatekeepers.

National competition authorities have also continued to take enforcement action: most recently, the German Federal Cartel Office secured commitments from Check24 (Germany's leading energy comparison platform) requiring it to abandon all price parity clauses in its contracts with energy suppliers. See our March 2026 update.

Transaction control

1. CMA publishes revised guidance on merger remedies 

On 19 December 2025, the CMA published its revised guidance on its approach to remedies in merger cases (Merger Remedies Guidance). The Merger Remedies Guidance and updated approach to remedies follows the CMA's Mergers Charter and Call for Evidence published in March 2025 (see our March 2025 update). The changes to the CMA's guidance incorporate the CMA's 4Ps framework into the merger remedies process. 

As widely anticipated following the CMA's Call for Evidence, and as seen in the draft guidance during the CMA's consultation, behavioural remedies look set to play a greater role in future merger cases, particularly following the CMA's removal of the presumption against behavioural remedies at phase 1. See our January 2026 update for an overview of the new guidance.

2. Mergers 2026 – One year on from the CMA's pivot to the Government's growth agenda

In our latest podcast episode, hosted by Fiona Garside, Nigel Parr, Chris Eberhardt and Tom Punton reflect on the political context driving changes to the CMA's approach to merger control. The discussion then looks at what the CMA's 4Ps framework means for merger control in practice, including faster timelines and greater engagement between the CMA and the merging parties. The team also consider how the CMA’s approach to remedies is developing, including a greater willingness to consider behavioural commitments. To conclude, the team highlight key developments to watch out for in the year ahead, including key cases and the proposed reforms to the Phase 2 decision-making process. Listen here.

3. UK Government confirms the planned refinement of mandatory sectors under the NSIA

On 12 March 2026, the UK Government published its response to its consultation on a proposed revised scope for entities the acquisition of which is subject to mandatory prior clearance under the National Security and Investment Act. The Government has announced its plan to: (i) create standalone mandatory sectors for Critical Minerals and Semiconductors; (ii) update other existing definitions, including Advanced Materials, Artificial Intelligence, Communications, Critical Suppliers to Government, Data Infrastructure, Energy, Suppliers to the Emergency Services, and Synthetic Biology; and (iii) create a new Water schedule.

These changes have not yet been enacted into law. The consultation response states that the Government intends to bring secondary legislation before Parliament later this year. See here for an overview of the proposals.

4. What's new in FDI: Spotlight on Germany

In February 2026, the Federal Ministry for Economic Affairs and Energy published the annual investment screening statistics on foreign direct investment (FDI) screenings in Germany in 2025. The German government has also confirmed that it plans to publish a consolidated FDI Screening Act by mid-2026. The anticipated legislative changes have important implications for corporate acquirers and private equity firms planning transactions involving German target companies. See our February 2026 update.

5. A world of opportunity - Foreign investment in Europe

In recent years, there has been a proliferation of FDI regimes worldwide, including in the EU. It is therefore increasingly important to consider what FDI approvals may be required early on in any investment / M&A activity and to ensure that the deal timetable factors in the relevant review periods. Our team is very experienced in coordinating FDI filings alongside merger control and other filings.

In December 2025, the European Parliament, Commission and Council reached a provisional agreement on a new EU Foreign Investment Screening Regulation and the draft text was published in February 2026. In addition to the EU proposals, all 27 EU Member States now have FDI regimes in place. See our overview of FDI regimes in key EU jurisdictions for further information. 

6. CMA Merger Watch: UK merger control quarterly update (Q1 2026)

The second edition of our CMA Merger Watch (published by the Ashurst Competition and Economics team) provides a clear, practical overview of recent UK merger control activity and policy developments.

Q1 2026 was quiet in terms of new Phase 1 cases, with just 6 new Phase 1 cases opened (the lowest number in more than two years) and 3 Phase 1 decisions. However, the CMA has 4 ongoing Phase 2 cases which have generated a number of interesting developments. Highlights in this edition include: (i) the CMA blocking an offshore catering merger; (ii) two wins for the "exiting firm" counterfactual; (iii) use of the new Phase 2 fast track process; (iv) the role of Gen AI in the CMA's assessment of Getty Images / Shutterstock; and (v) consultation on reform to the UK competition regime.

ESG

1. Greenwatch: greenwashing in the spotlight - regulatory risks across the supply chain 

On 22 January 2026, the CMA published new guidance for retailers, manufacturers and distributors on making green claims across the supply chain, adding to its existing guidance bank (including the Green Claims Code). Greenwashing is an area of focus for the CMA and regulators around the world. Businesses are making an increasing number of environmental and sustainability-related claims and consumers have an increasing interest in environmental factors. The new guidance confirms that misleading green claims remain on the CMA's radar as a priority for enforcement. It reiterates that the potential risk applies to all businesses in the supply chain.

The DMCC Act strengthened regulatory enforcement of consumer protection law and granted the CMA the ability to impose fines of up to 10% of a company's global turnover for breaches, including for false or misleading claims. See our January 2026 update.

2. Environmental Joint Purchasing: CMA and ACM Insights

In January 2026, European regulators published two informal opinions on joint environmental sustainability initiatives, providing greater insight into their regulation in the context of competition law. On 23 January 2026, the CMA published its fourth informal opinion under its Green Agreements Guidance (see our October 2023 update) relating to a framework scheme jointly procuring agricultural and nature-based solutions. This followed an informal opinion from the Dutch competition regulator on 12 January 2026, providing advice on a joint purchasing initiative under its policy rule on sustainability agreements. See our February 2026 update for an overview of the two opinions.

Other

1. RIIO-3: Ofgem's Final Determinations at a glance

On 4 December 2025, Ofgem published its Final Determinations for the electricity and gas transmission and gas distribution price controls for the period from 1 April 2026 to 31 March 2031 (RIIO-3). The Final Determinations set out the funding and performance rules that will apply to network operators in the electricity and gas transmission and gas distribution sectors from April 2026 to March 2031. See our January 2026 update.

2. Government consults on reforming UK competition regime

On 20 January 2026, the Department for Business and Trade published a consultation on 'Refining Our Competition Regime', which proposes a number of legislative reforms to the UK competition regime in line with the Government's pro-growth agenda, focused on the mergers and markets regimes. 

The consultation proposes to remove the existing independent CMA panel members from the decision-making processes for Phase 2 merger reviews and market investigations with key decisions being made instead by the CMA Board or new sub-committees of the Board, at least half of which will be non-executive Board members or non-CMA staff experts. 

The markets regime will be streamlined into a single-phase market review tool with stricter timelines which would aim to reduce the end-to-end review process to 18 to 24 months. The assessment will focus on whether there is an adverse effect on consumers, in line with the current test for market studies. Proposals are also made in relation to the approach to remedies, including the introduction of sunset clauses.

There are also proposals to amend the share of supply and material influence tests in merger control, with the proposals aimed at providing greater certainty on when mergers will fall within the CMA's jurisdiction. See here for our overview of the proposals and here for our response to the consultation.

3. CMA publishes revised markets regime guidance

On 3 February 2026, the CMA published its updated markets guidance. This follows the publication of the CMA's Approach to Markets Work in July 2025 and consultations on the draft guidance in Autumn 2025 and in 2024 on changes resulting from the DMCC Act. The revised guidance seeks to implement the CMA's 4Ps framework (pace, predictability, proportionality and process). It also introduces new processes, such as the implementation of a project roadmap at the beginning of the process, earlier and more frequent engagement with the parties, and measures that are intended to reduce the overall end-to-end length of markets projects. See here for further details. 

4. The Year Ahead: Australian Competition and Consumer Commission focusses on 11 priorities

The Australian Competition and Consumer Commission (ACCC) has announced its compliance and enforcement priorities for 2026-27, which it has described as reflecting the ongoing financial pressures facing households and businesses, rapid market changes, and the need for regulatory responses that are evidence-based, proportionate to harm and effective. Our February 2026 update examines the ACCC's priorities for the year ahead, highlighting key changes from 2025.

5. UK consumer law compliance guide - pricing practices

This page provides a concise overview of how to ensure your pricing complies with the DMCC Act and the CMA's current expectations. Pricing practices are an enforcement priority in the UK. Businesses should therefore ensure their pricing design, presentation and governance meet legal requirements. The individual guides provide practical guidance on specific pricing practices (including drip pricing, reference pricing, loyalty pricing, dynamic pricing and unit pricing) to help you assess risk and implement compliant pricing strategies.

6. Tariffs: Impact of the recent US Supreme Court ruling on US trading partners

The US Supreme Court has ruled that the US President's tariff measures under the International Emergency Economic Powers Act (IEEPA) are unlawful. This invalidates a range of far-reaching tariff measures, including the "reciprocal tariff" regime that drove much of the recent US trade policy. Many countries, including the EU, made far-reaching concessions to avoid or reduce IEEPA tariffs. With those tariffs now invalidated, some US trading partners may push to renegotiate or withdraw from their commitments. See our March 2026 update.

7. Doubling down: the Australian Government doubles penalties for serious competition and consumer law breaches

On 26 March 2026, the Australian Commonwealth Government passed legislation doubling the maximum penalties for contraventions of the Competition and Consumer Act 2010 and the Australian Consumer Law. The key points to note are: (i) the maximum corporate penalties for breaches of the competition and consumer law have doubled, with the fixed penalty limb rising from AUD 50 million to AUD 100 million per contravention; (ii) the new AUD 100 million maximum penalty also applies to the new merger regime, for failures to notify the ACCC of acquisitions that meet the notification thresholds; and (iii) increased penalties apply economy-wide, although the reforms were prompted by rising fuel costs as a result of the war in the Middle East. See here for more information.