THE Labour Government has drawn anger after making the “dystopian” decision to give a former boss of Amazon UK a top watchdog role.
The chairman of the UK’s competition watchdog stepped down earlier this week because he had a “different strategic approach” from the Government, Chancellor Rachel Reeves claimed – though reports said he had been ousted for not having enough focus on “growth”.
Marcus Bokkerink had led the Competition and Markets Authority (CMA) – a government agency tasked with promoting competition and preventing anti-competitive practices to protect consumers and ensure fair markets – amid complaints from businesses that it had intervened too much in deals.
Bokkerink has been replaced in the role of chair by Doug Gurr, the former country manager of Amazon UK.
Cat Hobbs, the founder and director of We Own It – which advocates for public ownership of key services – said: "It's actually dystopian that the government is putting an ex-Amazon boss in charge of the Competition and Markets Authority.
“Has this Labour government abandoned the idea of markets? Have they given up on Adam Smith's butcher, brewer, and baker?
“It's bizarre and scary to see a government being so cavalier with an institution whose role is to stop monopolies and protect well functioning markets.
“Keir Starmer is clearly more concerned to send a friendly signal to Amazon (which is in court over its monopoly power in the US) than he is about protecting UK consumers.”
Hobbs added: “Can the public expect fair play in our markets from an ex-Amazon boss? Will he prioritise keeping prices low and regulating in the interests of households across the country?
“It's dangerous to have a Prime Minister who kowtows to giant corporations like Blackstone and Amazon thinking they are the only way we can get investment, ignoring other options like a wealth tax and direct, cheaper public sector investment for growth.”
The Labour Government has demanded that regulators, including the CMA, prioritise supporting growth as well as regulatory responsibilities.
Chancellor Reeves and Business Secretary Jonathan Reynolds called bosses of UK regulators to Downing Street last week to spell out their strategies in order to drive growth.
Labour were elected last July with economic growth as their number one priority, but have so far failed to deliver. In December, the Office for National Statistics said that the UK economy had grown by 0% between July and September.
Speaking in Davos hours after Bokkerink’s departure, Reeves said: “Now, of course, the regulators are independent, and the chair of the CMA decided to step down, but he recognised that this Government have got a different strategic approach when it comes to regulation.
“He recognised it was time for him to move on and make way for somebody who does share the mission and the strategic direction that this Government are taking.”
The CMA was also publicly criticised by Microsoft after it initially blocked the tech firm’s planned takeover of gaming giant Activision Blizzard.
Microsoft president Brad Smith said in 2023 that the UK was “bad for business”, although the deal was eventually given the green light.
Last week, the Financial Conduct Authority (FCA) was among regulators to tell Government it will “take greater risks” to support its drive for more economic growth.
However, it also warned that this strategy could lead to more failures and potentially affect consumers and firms.
