“Re-setting the UK-EU relationship”: what does the new UK-EU Competition Cooperation Agreement mean for businesses?

BACKGROUND

On 25 February 2026, the EU and the United Kingdom signed the EU–UK Competition Cooperation Agreement (“Agreement”), creating for the first time since Brexit a formal, structured framework for cooperation on competition enforcement between the UK’s Competition & Markets Authority (“CMA”), the European Commission and EU Member State national competition authorities (“NCAs”). This is the first supplementary agreement to the UK-EU Trade and Cooperation Agreement (“TCA”) since the TCA came into force in 2021.

What is new? And why does it matter?

Moves from ad hoc to formal cooperation: Although the TCA provided a general basis for cooperation post Brexit, most real world interaction between the CMA and EU authorities has been informal. The new Agreement formalises notification, coordination and information sharing mechanisms, bringing EU-UK cooperation closer to the EU’s arrangements with other key international partners (such as the USA, Canada, Japan and South Korea). The Agreement therefore signals a stronger intent toward synchronised investigations.
Early notification and coordinated action: Competition authorities must notify each other where enforcement activity is likely to affect the other party’s “important interests”. The Agreement also expressly allows coordination of enforcement steps, including timing. As a result, parallel UK/EU investigations are likely to start earlier and run more closely together. Simultaneous or near simultaneous dawn raids across jurisdictions are now also an increasingly realistic scenario.
Cooperation with both the European Commission and all 27 EU NCAs: Importantly, the Agreement also covers cooperation with the individual EU NCAs, which may lead to more cooperation at that level. Although the Agreement only covers EU competition law enforcement (and not Member State domestic competition laws) businesses may expect broader cooperation between NCAs and the CMA and face coordinated scrutiny from multiple authorities at once, particularly where the conduct affects several Member States or global markets.
Information sharing: Confidential information may be shared with the consent of the parties but can also be shared without consent where domestic law allows. The information exchanged between the competition authorities can only be used for the proceeding for which it was provided, with additional safeguards for information relating to natural persons. In practice, authorities are still expected to request confidentiality waivers in many cases (see below).
Scope of the Agreement: The Agreement does not cover State aid, the EU Digital Markets Act, EU Foreign Subsidies Regulation, aspects of the UK Digital Markets, Competition and Consumers Act 2024 (“DMCCA”) outside the scope of the Enterprise Act 2002. However, both UK and EU authorities have signalled that informal cooperation will continue, particularly in digital and technology related cases.

Overall, the Agreement represents an evolution rather than a revolution, but its political and operational signals are important:

It demonstrates a renewed commitment to EU–UK cooperation, consistent with the broader political “reset” in relations – increasing the likelihood of parallel, coordinated investigations, earlier authority engagement and greater information sharing.
It aims to offer businesses greater predictability in cases spanning across both jurisdictions.
It reinforces the need for coherent cross-Channel strategies early in any transaction or investigation.

CMA ENFORCEMENT PRIORITIES: WHAT BUSINESSES SHOULD EXPECT

Although the Agreement itself does not set enforcement priorities, the CMA has been clear – through its Annual Plan, public statements and recent cases - about the areas where it is focusing its resources. For 2026, the CMA’s key priorities include:

1. Cartels and anti-competitive agreements

This Agreement reinforces a broader trend towards closer UK-EU cooperation in cartel and conduct investigations. In recent years, the CMA and the EC have frequently announced enforcement action in close succession, including in relation to cartel fines, coordinated dawn raids and investigations into large technology firms. The CMA continues to prioritise hard-core restrictions, including cartels, information exchange and other forms of coordinated conduct, particularly where practices reduce strategic uncertainty or facilitate market coordination.

2. Competition in regulated sectors

The CMA remains focused on competition and consumer protection issues arising in regulated and quasi‑regulated sectors, working closely with sector regulators such as Ofcom, Ofgem and the FCA. While the Agreement allows for information‑sharing only by and with the CMA (and not sector regulators directly), it is likely to support more consistent analytical approaches and enforcement outcomes across jurisdictions in sectors where competition and regulatory oversight intersect.

3. Mergers with cross-border significance

The new Agreement will likely make parallel UK/EU merger reviews more closely coordinated.

The CMA has made clear that it does not seek to intervene in global mergers as a matter of course, particularly where another authority is already conducting a review. Its focus remains on transactions that raise a credible risk of harm to competition or consumers in the UK.

That said, the CMA continues to apply close scrutiny to mergers with an international dimension where there is a clear UK nexus, including transactions involving:

digital and data‑driven ecosystems;
nascent or potential competition with UK relevance; and
complex global supply chains or markets where the UK may be disproportionately affected.

The Agreement is likely to facilitate earlier engagement, information‑sharing and better coordination of timing and analysis in cases reviewed in parallel, but it does not imply automatic duplication of reviews or convergence of outcomes. The CMA has been clear that it will intervene selectively, and only where UK interests may not be adequately addressed through remedies or decisions taken elsewhere.

4. Digital markets and consumer protection

While the technology-regulatory aspects of the DMCCA are outside the scope of the Agreement, enforcement of competition and consumer law remain a core CMA priority. The CMA is focused on:

platform dominance and leveraging;
digital advertising markets;
interoperability and data access issues; and
unfair commercial practices, including misleading online conduct, subscription traps and other dark-pattern type behaviour.

PRACTICAL IMPLICATIONS FOR BUSINESSES

1. Businesses should review and update competition compliance and dawn raid policies

With enforcement becoming more coordinated - and given the CMA’s continued focus on cartels and digital markets - businesses should ensure that their competition law compliance and dawn raid policies are up to date. In particular, businesses should:

Review and update competition compliance and dawn raid manuals to reflect:
- the new EU–UK cooperation architecture; and
- potential parallel investigations and coordinated inspections.
Ensure staff training is refreshed across UK and EU operations. In particular, employees should be trained on handling simultaneous requests for information, document preservation obligations, internal communications during investigations and interactions with authorities.
Rehearse dawn raid scenarios, particularly where:
- multiple authorities might inspect a business simultaneously in several locations; and/or
- information may be shared across borders.
Digital and remote‑working environments should be covered in protocols, including access controls, device handling, cloud storage and communication channels. Businesses should update IT, communications, and data access controls to ensure compliance with both UK and EU requirements.

2. Cross jurisdictional strategies must be aligned

Companies involved in UK/EU investigations or mergers should:

Ensure filings and submissions are consistent;
Anticipate parallel engagement with multiple authorities simultaneously; and
Prepare for enhanced information sharing.

3. Waivers will remain common - and pressure to grant them may increase

Even though the Agreement allows some information exchange without consent, as mentioned earlier, in many cases regulators will still request that parties grant relevant competition authorities confidentiality waivers. Businesses should:

Carefully assess the scope and implications of any requested waiver;
Avoid broad or open ended waiver language; and
Coordinate legal strategies across jurisdictions.

CONCLUDING REMARKS

The Agreement is a significant step forward in rebuilding structured cooperation. For businesses, it means more alignment in cross border investigations, more predictable (though not necessarily identical) outcomes, increased importance of coordinated legal strategies, and greater need for robust internal protocols - including dawn raid preparedness.

While the Agreement is not yet in force (it will become legally effective once ratification procedures are completed on both sides), it reinforces the case for businesses to ensure that their competition compliance and dawn raid policies are up to date. The direction of travel is clear, and enforcement risk already exists; the Agreement simply makes coordination more structured and effective.

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