UK Proposes Sweeping Reforms to Competition Class Actions, Appeals and CMA Enforcement
UK in-house counsel defending collective proceedings or facing CMA investigations must weigh in by 25 September 2026 on proposals that would tighten class certification, grant civil immunity to first-in leniency applicants, and consolidate regulatory appeals before the CAT.
On 17 July 2026, the UK Department for Business and Trade opened a consultation proposing wide-ranging reforms to three pillars of the competition landscape. For collective actions before the Competition Appeal Tribunal, certification would shift from a relative to an absolute suitability test, filing fees tied to claim value would be introduced, costs budgets would become mandatory, and damages-based funding agreements would be permitted for the first time in opt-out cases. The CAT would gain new mediation powers, and Type A leniency applicants would receive civil immunity from damages claims—a potentially decisive shift in cartel strategy. On regulatory appeals, the government proposes transferring jurisdiction from the CMA to the CAT, harmonising appeal standards across Ofwat, CAA, Ofcom and other sector regulators, and applying judicial review principles uniformly. On enforcement, the CMA would gain discretion over its decision-making structure, confidentiality handling and access-to-file rules, with a new £300,000 penalty cap for undertakings lacking representative turnover. Affected businesses should consider formal consultation responses and reassess litigation, settlement and leniency strategies.