Competition and Consumer

Digital Markets Competitions and Consumers Act

Following the Government's consultation response published on 2 April 2026, the subscription contract rules will now come into force in spring 2027. In April 2026, the CMA issued its first financial penalty under the DMCCA — a £4.2 million fine against AA Driving School and BSM Driving School for drip pricing (a mandatory booking fee not included in the headline price shown to consumers). Further enforcement action is expected during the remainder of 2026 based on the CMA's priorities (published in its approach document in April 2025). Its focus for enforcement includes aggressive sales practices that prey on consumers in vulnerable positions, providing information to consumers that is objectively false, banned practices including fake reviews, fees that are hidden until late in the purchase process, and contract terms that are clearly imbalanced and unfair, including those that impose unfair exit charges on consumers. The CMA published price transparency guidance to help companies comply with the rules.

Dark patterns

In May 2026, the CMA secured a High Court-endorsed settlement with Emma Sleep, which admitted it broke consumer law by using misleading countdown timers and false 'high demand' and 'discount' claims. Emma Sleep has given binding undertakings to stop these practices and implement ongoing compliance monitoring obligations. A separate aspect of the case concerning Emma Sleep's use of 'was/now' reference pricing went to trial on 4 June 2026.

Unfair consumer contract terms

In October 2025, the CMA announced it is planning to update its guidance on unfair consumer contract terms (CMA37) to make it easier to understand. The CMA launched its consultation on 22 January 2026, which closed on 19 March 2026. They published the updated guidance following the consultation on 22 July 2026.

EU Digital Fairness Act

For more information about the DFA, please see the Advertising section.

Digital Markets

In 2025, the CMA designated Apple and Google as having strategic market status (SMS) under the DMCCA in relation to their app store platforms, and Google additionally in relation to search and advertising. On 14 May 2026, the CMA launched its fourth SMS investigation into Microsoft's business software ecosystem, assessing whether Microsoft's position limits customer choice through product bundling and interoperability restrictions, and whether competing AI tools can integrate effectively with its software. A designation decision is expected by February 2027.

The CMA is consulting on "steering" conduct requirements for Apple and Google's mobile platforms (proposed 30 June 2026), which would require both companies to allow UK app developers to direct customers to alternative payment options. The consultation closes 28 July 2026. In relation to Google’s search SMS designation, the CMA has imposed conduct requirements in tranches, including a Publisher requirement (3 June 2026) and Fair Ranking and Data Portability requirements (17 June 2026). Further requirements, including a User Choice requirement, remain outstanding.

CMA

In October 2025, HM Treasury published an update to its regulatory action plan, setting out the Government's strategic steer to the CMA on supporting economic growth. In March 2026, the CMA published its Annual Plan 2026–2027, with priorities including the 4Ps framework, targeting anti-competitive conduct in key markets and supporting SMEs. In January 2026, the Government consulted on competition reform, including replacing the Phase II independent expert panel with CMA board sub-committees. The King's Speech on 13 May 2026 confirmed the Government's intention to introduce a Competition Reform Bill.

Businesses should monitor the Bill’s progress through the 2026–27 parliamentary session and assess how proposed changes to Phase II decision-making may affect their deal planning.

Merger control

In October 2025, the CMA published draft revised merger remedies guidance, taking a more flexible approach to behavioural remedies and incorporating the 4Ps framework; final guidance followed on 19 December 2025. In January 2026, the CMA launched a review of merger efficiency arguments, followed by a consultation on draft revised merger efficiencies guidance on 3 June 2026. Key changes include rivalry-enhancing efficiencies assessed as part of the overall competitive impact rather than after a finding of harm, greater recognition of dynamic efficiencies, and a broader evidence base. The consultation closed on 1 July 2026, with final guidance expected later in 2026.

Once finalised, the guidance will replace paragraphs 8.2 to 8.27 of the Merger Assessment Guidelines; merging parties should engage with the revised framework, particularly in relation to dynamic efficiencies.

Labour markets

Anticompetitive behaviour in labour markets is a growing global focus. In September 2025, the CMA published guidance confirming that no-poaching and wage-fixing agreements constitute anticompetitive conduct, along with examples of sensitive information exchanges and practical compliance steps. In March 2025, the CMA issued its first labour markets infringement decision, fining the BBC, ITV, BT and IMG over £4.2 million for sharing sensitive pay information about freelance workers. This reflects a broader international shift — the European Commission imposed €329 million in fines on Delivery Hero and Glovo for no-poach infringements in June 2025.

The CMA has signalled it will publish further guidance for employers; businesses — particularly in retail, hospitality and logistics — should review their pay-setting and recruitment arrangements to ensure compliance.