The government has sent a “clear message” to UK regulators by ousting the chair of competition watchdog, in what lawyers described as the “most overtly political” regulatory intervention of recent years.

Marcus Bokkerink, who joined the Competition and Markets Authority (CMA) in 2022, was forced out of his role due to a “different approach” on economic growth, the Chancellor Rachel Reeves said at Davos. 

A former Boston Consulting Group executive, Bokkerink has overseen an interventionist two years at the regulator in which it has clashed with executives and Westminster over decisions to block high profile deals, most notably the tie-up between Microsoft and Activision Blizzard in 2023. It later approved the deal after concessions were made.

Speaking to business leaders at the government’s International Investment Summit last year, Keir Starmer singled out the CMA and said the body needed to “take[..] growth as seriously as this room does.”

While Reeves and Starmer made have ramped up pressure on regulators in recent months, the decision to oust Bokkerink shocked City advisers last night and signalled a firmer approach to regulatory oversight.

“This is a significant step by the UK government and one that is highly unusual,” said Peter Harper, head of competition and antitrust at law firm Eversheds Sutherland. “While the CMA has made a concerted effort to show how it does contribute to economic growth, this is a clear message from the UK government that it wants more to be done to reduce regulatory barriers to investment.”

After it was criticised in November, the CMA looked to assuage concerns over its approach and pledged to adopt softer behavioural remedies on mergers rather than forcing firms to sell off assets.