What legislation grants powers to the CMA in the UK?

What legislation grants powers to the CMA in the UK?

• A. Companies Act 2006
• B. Consumer Rights Act 2015
• C. Enterprise and Regulatory Reform Act 2013
• D. Competition Act 1998

Answer: (C)

The Competition and Markets Authority (CMA) in the UK is primarily granted its powers by the Competition Act 1998. This legislation serves as the cornerstone of UK competition law and provides the legal framework for the CMA to investigate and take action against anti-competitive practices, like cartels and abuse of market dominance. While the Enterprise and Regulatory Reform Act 2013 did introduce some changes to competition law, including amendments that enhance the functions of the CMA, the foundational authority comes from the Competition Act 1998. The other pieces of legislation mentioned, such as the Companies Act 2006 and the Consumer Rights Act 2015, focus more on company law and consumer protections rather than granting powers specifically related to competition enforcement. The Competition Act 1998 is vital in empowering the CMA to ensure fair competition in the marketplace, thereby protecting consumers and businesses.

The Competition and Markets Authority (CMA) in the UK is primarily granted its powers by the Competition Act 1998. This legislation serves as the cornerstone of UK competition law and provides the legal framework for the CMA to investigate and take action against anti-competitive practices, like cartels and abuse of market dominance.

While the Enterprise and Regulatory Reform Act 2013 did introduce some changes to competition law, including amendments that enhance the functions of the CMA, the foundational authority comes from the Competition Act 1998. The other pieces of legislation mentioned, such as the Companies Act 2006 and the Consumer Rights Act 2015, focus more on company law and consumer protections rather than granting powers specifically related to competition enforcement. The Competition Act 1998 is vital in empowering the CMA to ensure fair competition in the marketplace, thereby protecting consumers and businesses.