According to latest news, the CMA (Competition and Markets Authority) has launched a fully fledged study into the affordability and standards of service of legal firms in England and Wales. CMA will be working closely with government departments to analyze the legal market in 3 key areas:
- To analyze whether customers can drive effective competition by making informed purchasing decisions
- To see if customers are protected adequately from potential harm or can obtain satisfactory redress if legal services go wrong
- The impact on competition for the supply of legal services based on regulation and the regulatory framework
The CMA must conduct its market study to look into whether markets are working well which can lead to a range of outcomes including:
- a clean bill of health
- actions which improve the quality and accessibility of information to consumers
- encouraging self-regulating of businesses within the market
- making recommendations to the government to change regulations or public policy
- taking competition or consumer law enforcement action, and
- making a reference for a more in-depth (‘phase 2’) market investigation, or accepting formal undertakings in lieu of a reference
The CMA is to announce whether it is going to initiate a further investigation (‘phase 2’) within 6 months and is required to publish its findings within 12 months, highlighting the actions it intends to take if any.
To take a further look at this market study, go the the case study page here.