How should competition policy react to coronavirus?

Article

In addition to causing loss of life on a tragic scale, coronavirus, and the lockdown policies to suppress and reverse its spread, are causing great short-term economic disruption. They will also have lasting economic consequences. Competition and consumer protection authorities can and should play an important role in addressing the short-term harm to consumers and markets and, at least as important, can and should contribute to a robust and sustainable post-crisis recovery over the longer term.

Competition authorities have a huge task ahead of them. They will need to adapt and refocus their work in response to the reshaping of the economy that will occur as it recovers from the coronavirus recession. The crisis has further highlighted pre-existing deficiencies in the legal framework for competition and consumer protection law; unless these are addressed, the task of adaptation will be all the greater.

This paper is split in to two parts. The first outlines briefly the work that the CMA is currently undertaking to respond rapidly and robustly to the immediate threats to competitive outcomes for consumers (for example, concerns over price gouging, firms not honouring the right to a refund on cancellation of services). The second part looks at the potential longer-term contribution of competition policy to the recovery.

Related items

  1. Dramatic high-angle drone photograph of decommissioned oil platforms anchored in the Cromarty Firth, near Invergordon, Scotland, as the sun sets over a calm North Sea

    Allies for delivery: Rebuilding faith in Scottish politics via the North Sea

    Can Scottish politicians still build enough of a consensus to deliver meaningful change for disillusioned voters?
  2. A busy high street in Kingston-upon-Thames, London. Shoppers walking beneath multi-coloured bunting

    Bricks vs clicks: The case for an online sales tax

    It's time to rethink how we tax retail.
  3. A pound coin sits on top of a newspaper showing an image of a line graph

    Cost of living, economic growth and stability: How to make this autumn budget a success

    In the autumn budget the chancellor can take three steps towards improving people's living standards.