The Competition and Markets Authority (CMA) recently published its revised merger remedies guidance (CMA87) for consultation, aiming to ensure the UK merger control regime remains effective, evidence-based and responsive to businesses and consumers. Key proposed changes include widening the scope for behavioural remedies, supporting pro-competitive efficiencies and customer benefits, and enhancing the merger remedy process for greater transparency and engagement. The guidance aligns with the CMA’s ‘4Ps’ – pace, predictability, proportionality and process – and incorporates extensive feedback from businesses, advisers and stakeholders. While core aspects remain unchanged, the guidance has been modernised to aid the business community.

The CMA published its updated merger guidance on jurisdiction and procedure, along with its merger notice template and guidance on the CMA's mergers intelligence function. The primary purpose of updating these resources is to incorporate the CMA's '4Ps' strategic framework and ensure that merger control continues to support the UK's economic growth strategy. Key changes include:

• accelerated timelines and clearer expectations, particularly at the pre-notification and phase 1 stages
• early engagement, including "teach-ins" with merging parties
• clarification on jurisdictional tests, particularly relating to the "material influence" and "share of supply" tests
• fostering a UK focused merger control regime, using a "wait and see" approach to global merger investigations by competition regulators in other jurisdictions.

The new leniency guidance aims to incentivise Type A immunity applications (ie the first applicant to provide sufficient information for the CMA to commence a credible investigation, in exchange for full immunity), as well as Type B and C applications (generally reduced levels of leniency for applicants who come forward at a later stage). The updated guidance includes new provisions that draw key distinctions between these levels of immunity, in particular:

• the discount levels for Type B and C applicants have been updated, including Type B applicants no longer being eligible for upfront immunity from financial penalties (which is now only available to Type A applicants). Further, the CMA has confirmed the maximum discounts from financial penalties for Type B and Type C applicants is unlikely to exceed 75% and 50%, respectively
• immunity from Competition Disqualification Orders for directors of Type B and C applicants is now at the CMA's discretion
• the CMA will only exercise its discretion to grant criminal immunity to directors of Type B and C applicants in exceptional circumstances
• only Type A applicants (and Type B applicants who receive a leniency discount of 100% in exceptional circumstances) will benefit from automatic protection from debarment or exclusion under the Procurement Act 2023.