London Daily

Focus on the big picture.
Wednesday, Oct 22, 2025

To make Britain competitive globally, we must strip away regulatory red tape

To make Britain competitive globally, we must strip away regulatory red tape

Last month, the UK’s Competition and Markets Authority (CMA) made a ruling which blocked the merger of the two British crowdfunding sites Seedrs and Crowdcube. This was wrong for a slew of reasons, not the least because Seedrs and Crowdcube are both tiny companies that should be below the regulatory radar.

Both companies are currently loss-making and may need the scale that a merger would bring to remain viable. More than competing with each other, they compete in a huge and highly competitive market for start-up funding that includes seed funds, bank finance, angel syndicates and corporate venture funds. But mostly it was wrong because they, like the majority of digital businesses, compete in an increasingly global market.

Look at PayPal from the US, Sweden’s Klarna, or the UK’s TransferWise. In each case they started by serving their domestic market and then expanded to compete internationally. This is often the way with digital offerings.

The UK has a strong position in building innovative digital businesses, and is particularly strong in financial technology (fintech). For Britain to maintain this position, which is more important than ever as we seek to mitigate the impact of Brexit, we need a business and regulatory environment that supports the growth of our technology innovators.

At the forefront of this needs to be reining in excessive regulatory interventions in a range of areas. The recent review of UK competition policy by Conservative MP John Penrose lays the foundation for this. The report recognised the cumbersome red tape which slows businesses down and increases transaction costs and suggests a “better regulation” regime”. It proposes a “one-in-two-out” strategy for ministers attempting to introduce new rules. This must also translate into a clearer set of rules from sector regulators, so innovators can operate without risk of retrospective rule making and enforcement actions in the future.

In order to foster competitiveness after Brexit, predictability will be key. This will require the CMA to have a transparent and speedy process, with decisions made in weeks rather than months or years. Predictability means rulings based on the risk of consumer detriment from the combination of the companies’ current operations, not some conjecture about what they might do in the future.

The CMA review of Amazon’s proposed 16% stake in Deliveroo in 2019 hinged on whether Amazon might, in the future, enter the UK takeaway delivery market. Such decisions cast the CMA as soothsayers. Many big tech companies could, conceivably, enter many, many markets. To know that almost any such transaction could be thwarted based on regulator crystal ball gazing makes any UK-based merger highly uncertain and therefore less attractive.

Britain’s mergers and acquisitions review process must also recognise the international nature of competition in digital markets. With its focus on domestic competition, the CMA is far more likely to block the combination of two UK businesses than the sale of a UK business to an acquirer from overseas. Of course we need to protect consumers from the creation of true monopolies, but we must also recognise that competition is increasingly global, and have an eye to UK competitiveness. If it is far easier for our tech companies to sell to overseas buyers than to merge domestically, then our best digital IP will end up in foreign ownership and we will fail to create UK-based scale players that can compete on a global level. Our economy will be all the poorer as a result.

Newsletter

Related Articles

0:00
0:00
Close
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
×