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. Regional economies: The role of industrial strategy as a pathway to greener growth

    Regions like the North should have a key role to play in the development of a green industrial strategy.
  2. A mother and child walking in a field with hills in the distance

    Achieving the 2030 child poverty target: The distance left to travel

    On 27 March, the Scottish government will announce whether Scotland’s 2023 child poverty target – no more than 18 per cent of children in poverty – was achieved. 

  3. Spring statement: A changed world calls for a changed course

    If there are decades where nothing happens and there are weeks where decades happen, the last few weeks feel seismic.  The prime minister was right to say the world has changed. Donald Trump’s re-election in November has unleashed a wave…