Penrose Review: UK Competition and Consumer Policy — [Clive Efford in the Chair]

Acknowledges the need to reform public procurement processes, highlighting the importance of ensuring that new legislation benefits smaller firms and improves value for money. He supports speeding up competition law decisions through county courts.

Asks the Minister to explain why the Government has not prioritised recommendations such as creating county competition courts and improving redress systems for small businesses. She raises concerns about the lack of progress on these issues.

Asked whether the principles of competition apply to local authorities that often employ one arm's length contractor for jobs such as road building and maintenance. Cherilyn Mackrory highlighted the importance of competition policy for small businesses in Cornwall, noting that three quarters of local companies employ fewer than five people. She stressed the need to address low productivity levels and high unemployment rates in the region, particularly in hospitality and retail sectors. Mackrory also discussed the potential economic benefits of processing lithium locally and called for reduced red tape in the fishing industry to prevent business closures. Additionally, she supported reforms to digital market regulations to promote competition and innovation.

Mr Collins highlighted the dominance of large digital companies in various sectors, citing Google's control over search and browsers, Facebook and Google's share of digital advertising, Apple's monopoly on iOS apps, and WhatsApp's market penetration. He pointed out that dominant players like these abuse their power by treating customers differently and controlling access to data and platforms, which stifles competition and innovation.

Consumer confidence is essential for economic growth, but research by Which? found that one third of consumers experience problems with products or services annually. The Competition and Markets Authority needs more powers to protect consumer rights effectively. Patricia Gibson supports the Penrose review's proposal to give the CMA sharper teeth, including increased power to drive consumer rights and supply-side reforms.

Malhotra discussed the importance of ensuring effective competition policy, citing the Penrose report. She highlighted issues such as market concentration, tax avoidance, mergers that lead to unsustainable debt, and the need for a re-evaluation of the CMA's role. Malhotra also addressed concerns about digital markets and called for legislation to empower regulators like the CMA with more powers.

She calls for a new competition and consumer Bill due to the impact of the pandemic and cost of living crisis. Yvonne highlights the issue of fake online reviews, subscription traps, and drip pricing, urging for verified purchases and trust in businesses. She also discusses the need for mandatory dispute resolution schemes in key sectors, particularly concerning complex air travel refunds, and advocates for a single point of entry for all complaints through an accessible statutory ombudsman system.