What can the CMA do if a merger or takeover is deemed anti-competitive?

The correct action that the Competition and Markets Authority (CMA) can take if a merger or takeover is deemed anti-competitive is to investigate and block the takeover. This authority is crucial in maintaining fair competition in the market and ensuring that monopolistic practices do not negatively impact consumer choice and market dynamics.

When a merger or takeover is assessed, the CMA evaluates the potential impact on competition. If it finds that the transaction would lead to a substantial lessening of competition, it has the power to prohibit the merger or takeover from proceeding. This is in line with its responsibilities under the UK competition law framework, where protecting consumer interests and market fairness is a priority.

Additionally, the ability to block a takeover reflects the CMA's proactive role in regulating mergers that could harm competition rather than simply endorsing or overlooking them. This authority is a significant aspect of their mandate, ensuring that market integrity is maintained.