Market Investigation

The Competition and Markets Authority's power to launch a market investigation comes from section 131 of the Enterprise Act 2002. The CMA may make a market investigation reference where it has reasonable grounds for suspecting that 'any feature, or combination of features, of a market in the United Kingdom for goods or services prevents, restricts or distorts competition' in connection with the supply or acquisition of goods or services in the UK or part of it. A 'feature' can be the structure of the market itself, or the conduct of suppliers, acquirers or customers within it.

Unlike a merger investigation, which looks at a single transaction, a market investigation examines how an entire market is functioning. Official guidance describes the earlier OFT511 guidance as 'information on the circumstances in which markets will be referred for a market investigation under the Enterprise Act 2002', and that guidance has since been consolidated into the CMA's wider markets regime guidance. The Act itself defines a 'market investigation reference' as 'a reference under this section or section 132'.