Jessica Lennard from the Competition and Markets Authority gave a speech on 25 March. Data from that address showed Europe’s technology sector exceeding €1.5 trillion in total, accounting for over 8% of the continent’s economy. The speaker pointed to a tenfold increase in venture capital since 2015.
In the UK alone, technology went up 20% after 2023, now valued at $1.2 trillion in enterprise worth. This domain ranks third globally, after the US and China. One segment drawing notice is artificial intelligence, which may deliver around £47 billion in productivity advances for the nation each year, according to the same speech.
European players in fields such as fintech, clean technology, and data services have multiplied in number. Unicorns valued above $1 billion now total 181. According to the speech, these ventures are considered cornerstones of national and regional prosperity.
The speaker positioned competition as a core factor in Europe’s digital sphere. The CMA’s function in that setting was a big topic during the event.
How Does The CMA Work?
The Competition and Markets Authority serves as the leading body in the UK for competition and consumer protection. According to the speech, officials examine mergers, market practices, and possible anti-competitive conduct. Recent legislation called the Digital Markets, Competition and Consumers Act grants extended powers for digital oversight.
Investigations have dealt with cases such as a software supplier that locked schools into long contracts. CMA involvement gave those schools the freedom to switch platforms, which encouraged new approaches from smaller firms. The speech also mentioned action against major online services to safeguard fair terms for third-party sellers.
Another matter centred on a proposed merger of Experian and Clearscore. The CMA believed that deal could restrict progress for credit evaluation services. The merger was dropped, and Clearscore proceeded independently, doubling its client base and launching new products across multiple continents.
Further action targeted Amazon and Google practices that could disadvantage smaller enterprises. Amazon agreed to fairer conditions for its marketplace, and Google put better checks on fake reviews. The speech reported that billions in consumer spending hinge on online opinions. As a result, the CMA saw it as a pressing priority.
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What Does This Mean For Tech Ventures?
The CMA states that competition enforcement can inspire creativity and help new entrants stand a chance against established corporations. The speech cited the Open Banking development as a prime example, granting novel financial platforms an opening to serve over 70% of UK consumers.
Mergers occupy a major share of CMA activity. Data from the speech showed that out of around 50,000 deals each year, only one or two typically face prohibition. According to the CMA, this outcome demonstrates that legitimate alliances often gain clearance, whereas harmful ones are halted.
A stable route to exit or business growth is critical for investors in early-stage ventures. The CMA promotes those paths while safeguarding genuine rivalry. Jessica Lennard confirmed that cautious scrutiny is unavoidable, but fair proposals proceed if no major harm appears likely.
When Will Changes Begin?
January saw the introduction of the Digital Markets, Competition and Consumers Act, as stated in the speech. That framework requires a nine-month investigation for firms suspected of holding strategic market status. Apple and Google are under review for mobile ecosystem practices. Final decisions are scheduled for October 2025.
The speech explained that only the largest corporations meet the threshold for investigation. Requirements tie directly to annual turnover, market power, and the scope of their platforms. Regulators expect that measure to increase competition, granting smaller enterprises breathing room to innovate.
CMA leaders plan an Annual Plan that covers infrastructure, data access, and other factors linked to economic performance. Communication channels such as the CMA Growth and Investment Council were designed to hear from startups, scaleups, and representative bodies. The speech concluded that thriving competition leads to gains for both businesses and consumers.
