Beautiful Virgin Islands

Wednesday, Oct 08, 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

Beautiful Virgin Islands
0:00
0:00
Close
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
US Prosecutors Gained Legal Approval to Hack Telegram Servers
Macron Faces Intensifying Pressure to Resign or Trigger New Elections Amid France’s Political Turmoil
Standard Chartered Names Roberto Hoornweg as Sole Head of Corporate & Investment Banking
UK Asylum Housing Firm Faces Backlash Over £187 Million Profits and Poor Living Conditions
UK Police Crack Major Gang in Smuggling of up to 40,000 Stolen Phones to China
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Trump Proposes Farm Bailout from Tariff Revenues Amid Backlash from Other Industries
FIFA Accuses Malaysia of Forging Citizenship Documents, Suspends Seven Footballers
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
A Dollar Coin Featuring Trump’s Portrait Expected to Be Issued Next Year
Australia Orders X to Block Murder Videos, Citing Online Safety and Public Exposure
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
×