Concerns Mount Over Appointment of Former Amazon Executive as U.K. Antitrust Regulator Chair

A coalition of organizations and individuals has expressed concern over the United Kingdom government's decision to appoint Doug Gurr, a former Amazon executive, as the interim chair of the Competition and Markets Authority (CMA). This appointment comes at a critical time as the U.K. seeks to strengthen its position as a pro-growth, pro-tech nation by reducing bureaucracy. The coalition's concerns center around the potential implications for the regulator's independence and its ability to effectively oversee Big Tech companies.

The Digital Markets, Competition, and Consumers Act (DMCCA), which includes ex-ante powers, is distinct from the CMA’s existing enforcement capabilities. These new powers are designed to address the unique challenges posed by digital markets. The CMA has previously demonstrated the economic impact of digital advertising costs in a report that revealed an average burden of £500 per household in 2019, amounting to £14 billion in total. This figure indicates the significant financial impact on consumers due to a lack of competition in digital advertising.

The U.K. government's appointment of Doug Gurr has sparked debate about the CMA's operational independence. Gurr's nearly decade-long tenure with Amazon in both the U.K. and China raises questions about potential conflicts of interest. The coalition's open letter underscores the necessity for the Digital Markets Unit (DMU) regime to operate independently from political pressure to ensure positive economic outcomes for the entire economy.

The CMA has played a pivotal role in regulating Big Tech, collaborating with European Union counterparts to keep major technology firms in check. It has historically blocked acquisitions and enforced divestments among leading tech companies. However, the appointment of Gurr has led some to question whether this regulatory momentum will continue under his leadership.

Signatories of the open letter include prominent names such as DuckDuckGo, Yelp, and Mozilla. These smaller tech firms view Europe and the U.K. as essential buffers against Big Tech's global dominance. Their concerns highlight the need for robust regulatory frameworks that can effectively counter monopolistic practices in the technology sector.

The Labour Party has long advocated for urgent action to address monopolization within the U.K.'s tech industry. They emphasize that effective enforcement of the DMCCA could drive significant growth across the economy. The concern is that Gurr’s appointment might compromise these efforts if it leads to reduced regulatory scrutiny.

The interim nature of Gurr's appointment suggests that further evaluations will be necessary before confirming a permanent chair for the CMA. The government maintains that this move aligns with its broader strategy to promote business growth and innovation within the U.K.

"This government has a clear plan for change — to boost growth for businesses and communities across the U.K.," stated Jonathan Reynolds, the U.K.’s secretary of state for business and trade.