The UK government has raised concerns about hidden costs, a lack of transparency and overtreatment in private dentistry. In response, the Competition and Markets Authority (CMA) has signalled that it may launch a market study into the sector. Its draft annual plan for 2026-2027 even goes as far to say that “we expect … to include work on private dentistry”.
With this growing momentum, now is the time for providers to understand what a market study involves and how it could impact on their business. This series of blogs will outline the essentials and help you prepare.
So, what exactly is a market study?
A CMA market study is, essentially, a diagnostic tool. It involves a detailed review of a market to assess if there is an adverse effect on consumers. Market studies often vary in scope and complexity, although the CMA typically examines issues such as:
- how effectively businesses compete against each other;
- whether consumers can make informed choices;
- whether market structures or behaviours might risk consumer harm; and
- whether regulatory or policy changes might improve outcomes.
There is a 12-month statutory maximum to complete a market study. At the end of a study, the CMA may:
- give the market a clean bill of health;
- recommend regulatory or policy reforms;
- make recommendations that businesses change their behaviour (e.g. by giving consumers better information);
- take action for the benefit of consumers, such as implementing a CMA-led information campaign;
- take enforcement action to investigate breaches of competition or consumer laws; or
- make a reference for a full market investigation, if there are reasonable grounds to suspect that features of a market prevents, restricts or distorts competition.
A market investigation is the most intensive of the CMA’s market tools, enabling the CMA to conduct a rigorous assessment of a market and impose legally binding remedies. It may be possible to avoid a market investigation by offering legally binding commitments that address the issues identified.
At Mills & Reeve, our Health & Care team and Competition teams have extensive experience of advising on regulatory investigations, including CMA market investigations.
If you'd like to discuss what a potential market study could mean for your organisation, our team would be happy to help – please get in touch!
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