CMA publishes revised markets regime guidance

On 3 February 2026, the Competition and Markets Authority (CMA) published its updated markets guidance (CMA3) (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 This follows the publication of the CMA's Approach to Markets Work in July 2025 and consultations on the draft guidance in Autumn 2025 and in 2024 on changes resulting from the Digital Markets, Competition and Consumers Act. 

What you need to know

• The Markets Guidance seeks to implement the CMA's "4Ps" framework (pace, predictability, proportionality and process) into its markets work. 
• The Markets Guidance 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. 

Background to the CMA's Markets Powers 

The CMA has powers under the Enterprise Act 2002 (the EA02) to examine how markets function and to impose remedies where features of a market restrict, distort or otherwise harm competition. These powers sit alongside the CMA's other consumer and competition enforcement powers. 

The CMA's market investigation tools include its powers to informally gather information in a market review under section 5 of the EA02 and to launch formal market studies and market investigations. In recent years the CMA has used its informal market review powers a number of times, including to review groceries, road fuel and veterinary services sectors (which, in each case, were followed by a formal market study or a market investigation). 

The CMA's market study and investigation tools are subject to statutory timelines and reporting obligations. Following a market study, if the CMA has identified concerns within a market it may recommend or agree certain remedies with relevant parties or, if it considers they may be an adverse effect on competition, the CMA may refer the market to a full market investigation. Market investigations allow the CMA to conduct an in depth examination of the functioning of the market. Market investigations are currently led by members of the CMA's independent panel. At the conclusion of a market investigation, the CMA has powers to impose remedies on relevant parties including structural remedies such as divestiture or behavioural and monitoring remedies.

The UK Government is currently consulting on changes to the markets process, which includes proposals to replace the two-phase market study and market investigation process with a single-phase market review tool. 

Key changes to the CMA's Market Guidance 

In August 2025, the CMA launched a public consultation on new draft guidance on how the CMA exercises its market regime tools. The consultation closed in October 2025, and the CMA published its consultation outcome and adopted the new Markets Guidance on 3 February 2026. 

The final guidance is largely unchanged from the draft guidance published on 20 August 2025, although it includes further detail on the new project roadmaps and sectoral engagement. The Markets Guidance consolidates and supersedes six existing guidance documents (OFT 511, OFT 519, CC3, CMA3, CMA11, and CMA136) into a single document. As the majority of the CMA's previous markets guidance documents had not been significantly revised since 2013-14, the Markets Guidance contains substantive updates, which reflect recent case law developments and the CMA's new powers under the Digital Markets, Competition and Consumers Act 2024. The Markets Guidance is intended to reflect, and implement into its markets work, the CMA's 4Ps framework (pace, predictability, proportionality, and process). 

Incorporation of the 4P Framework

In respect of pace, the CMA will:

• carefully consider which market tool may be most appropriate to deliver pace at the outset of a project (i.e. market review, market study, or market investigation);
• focus on tightly scoping work, adopt targeted evidence collection and utilise sector expert advisers;
• publish a project roadmap at the start of investigations setting out bespoke timings and KPIs for each project; and
• improve the efficiency of its internal processes and pace of remedy reviews.

In respect of predictability, the CMA will:

• provide greater transparency as to how the CMA's strategy informs case opening and prioritisation decisions;
• identify when parties can expect to receive substantive updates and engagement with the decision-makers through the project roadmap; and
• provide regular updates to parties (for example through state of play meetings).

In respect of proportionality, the CMA will:

• take account of the costs to businesses when deciding whether to launch projects, including engagement with stakeholders, where possible to do so;
• prioritise issues which have the greatest potential harm and/or prospect of a successful remedy;
• undertake a "re-prioritisation" assessment during the course of projects, for example to accept undertakings or drop lines of inquiry;
• undertake a more comprehensive review of remedy costs to businesses and minimise the burden to businesses subject to remedies (such as reducing the frequency of self-reporting and imposing sunset clauses by default);
• deploy trials for information remedies in only limited circumstances, such as where early refinement of a complex remedy would be beneficial for business and the CMA; and
• take a more proactive approach to removing old remedies where no longer effective or required.

In respect of process, the CMA will:

• engage more with businesses, for example, via direct meetings and events rather than solely relying on written decisions; 
• formalise the use of teach-ins;
• offer meetings with CMA decision-makers at key points, for example, at the launch of projects, state of play meetings and other milestones, such as when consulting on remedies); and
• introduce more opportunities to update parties on progress and developing thinking.

Sector engagement 

In response to stakeholder feedback, the CMA has included further detail in the Markets Guidance in relation to its proposals for sector engagement. The CMA has explained that, as part of its evidence gathering process, it aims to draw from sector expertise and, on a case-by-case basis, may form a panel of experts to support its work. Where the CMA uses a panel, it would expect the panel to advise the CMA on technical matters and industry norms and practice. The CMA has clarified that it will publish details about the experts appointed to a panel in the project roadmap and that the amount of input by the panel will vary. The guidance further explains that panel evidence is only one source of information that the CMA will rely on when conducting markets projects and it will weigh all evidence it gathers in the round. 

Future of the markets regime 

The Markets Guidance provides significant updates to reflect the CMA's current practice with respect to its use of markets tools. However, it is likely that the guidance will need to be updated again in light of the ongoing consultation by the Department of Business and Trade (DBT) which includes proposals to amend the markets regime (see our January 2026 update).

Single phase investigations

In the consultation document, DBT explains the Government's concerns with the potential length of the end-to-end process where a market study is followed by a market investigation (which can be up to three years). While the Government recognises that market investigations require time to ensure robust analysis, DBT has expressed concern that consumers may continue to suffer harm while an investigation is underway and market participants are burdened with costs and uncertainty. 

DBT considers that the friction between conducting a market study as a first stage and a market investigation as a second stage leads to inefficiency. It has therefore proposed that a new single stage market tool is introduced to replace the current process. DBT has proposed that under the new single stage tool: 

• the CMA would either publish a final report with recommendations or consult on a provisional adverse effect on consumers within six to twelve months of launching a review;
• if less intrusive remedies are under consideration, the CMA would consult on provisional remedies and publish a final report within six months; and
• if more intrusive remedies are under consideration, the CMA would have a further six months to conduct the analysis required before imposing those remedies.

As a result, the end-to-end process should reduce from over 30 months to 18-24 months and in some cases would take considerably less than 18 months. 

Additionally, DBT has proposed that the legal threshold for making an adverse finding for the single-review tool would focus on whether there is an adverse effect on consumers unlike the current threshold for market investigations which relates to an adverse effect on competition. The proposed test for a single-phase market review therefore has the potential to broaden the scope of the tool. 

Sunset clauses

In the Markets Guidance, the CMA states that it will seek to minimise the costs and burden of remedies by including a sunset clause unless the CMA "judges that there is a good reason" for the remedy to remain in place. This is a welcome addition for stakeholders who have expressed concerns that some remedies remain in place for significant lengths of time and are unduly burdensome on affected parties. 

In its consultation, DBT is proposing to put this commitment on a statutory footing and require the CMA to provide its reasoning where a remedy does not include a sunset clause. 

Remedy reviews

The new Markets Guidance sets out that the CMA will review ongoing remedies more regularly either at its own initiative where the CMA has identified a change in circumstances or at the request of the relevant parties. The CMA has also committed to review remedies which are not subject to a sunset clause (or where the sunset clause exceeds ten years) within ten years of the remedy coming into force. 

On 19 January 2026, the CMA announced that it is reviewing 33 markets remedies (approximately 60% of market remedies in force at the time) to assess whether they should be amended or removed. 

DBT's consultation notes that, notwithstanding the CMA's commitment in the new Markets Guidance, the CMA is not currently required to review remedies within a set time frame. DBT therefore proposes to introduce a statutory requirement that all remedies must be reviewed at least once every ten years and is seeking views whether there is merit in permitting the CMA to deviate from this requirement in exceptional circumstances. 

Comment

Since March 2025, the CMA has updated its core guidance in each area of its work to implement the "4Ps" framework. The July 2025 approach document set out initial changes to the way the CMA would conduct its market work to ensure that its work and interventions drives growth and minimises uncertainty for businesses and investors. The new Markets Guidance formalises these changes to how the CMA uses its markets tools. There has been growing criticism of the lengthy and intrusive nature of the market study and market investigation process (with the two step process taking up to 36 months). The key changes (including the introduction of the roadmaps, the increasing use of sectoral expertise and the proposals for further and more frequent engagement with the parties) should provide greater clarity for relevant stakeholders on the CMA's process. 

DBT's ongoing consultation on Refining our Competition Regime proposes reforms which, if implemented, would have a significant impact on the CMA's markets work. The timing for these reforms is currently uncertain (in particular as they will require primary legislation). Until such time, the new Market Guidance, and the changes introduced to the markets process, should provide increased clarity and certainty to stakeholders on the CMA's exercise of its markets tools.