Creating clearer incentives: updates to the UK leniency regime finalised

The UK leniency regime and consultation

The CMA's leniency regime is a cornerstone of its cartel enforcement strategy, allowing businesses and individuals to come forward with information and cooperate with the CMA's investigation in exchange for reductions in, or in certain circumstances, immunity from penalties arising from a subsequent infringement decision.

In April 2025, the CMA launched a consultation on proposed changes to its guidance on applications for leniency and no-action in cartel cases. The proposals aimed to ensure that the incentives to apply for leniency are 'in the right place', and that guidance to potential applicants is clear, predictable and transparent. There were also a number of proposed updates reflecting legislative changes and developments in CMA policy, processes and experience. Our article earlier this year summarises the main proposed changes: Coming clean - CMA launches consultation on updates to cartel leniency guidance

Following the consultation process, the CMA has now published its final revised leniency guidance, together with two revised 'short guides' to leniency providing an overview for individuals and businesses.

The CMA's finalised approach largely reflects its original proposals – whilst it has made some minor amendments and clarifications, the main thrust of the revised policy has not changed.

Incentivising the 'first through the door'

A particular area of focus for the CMA is the desire to incentivise Type A immunity applicants (the first applicant to report and provide evidence of a cartel where the CMA does not have a pre-existing investigation), and Types B and C applicants (those who generally come forward at a later stage). There are a number of changes in the revised guidance aimed at sharpening this distinction:

• Updates to discount levels for Type B and C applicants: the revised guidance makes a number of changes to the previous version, which the CMA says reflects its existing practice in relation to corporate Type B and C applicants:
  • Type B applicants are no longer eligible for upfront immunity from financial penalties, or for 'leniency plus' (an additional reduction granted in one market because of a successful application in another market)
  • The revised guidance clarifies that discounts from fines for Type B applicants are unlikely to exceed 75% and may be significantly lower, and that discounts for Type C applicants may be much lower than the maximum of 50%
• Discretionary director immunity for Types B and C: immunity from Competition Disqualification Orders (CDOs) for directors of Type B and C applicants is now at the CMA’s discretion. All respondents to the CMA's consultation were opposed to this proposal, however the CMA has gone ahead on the basis that it is in the public interest for it to decide whether to grant immunity on a case-by-case basis, and that this approach will further incentivise Type A applicants (where CDO immunity remains guaranteed).
• Criminal immunity: exceptional circumstances only for Types B and C: the revised guidance makes clear that the CMA would only expect to exercise its discretion to grant criminal immunity to directors and employees of Type B and C applicants in exceptional circumstances.
• Procurement Act 2023 debarment protections: the revised guidance clarifies that only Type A immunity recipients (and Type B applicants who exceptionally receive a leniency discount of 100%) will benefit from automatic protection from debarment or exclusion under the Procurement Act 2023.

Implications for businesses

The new regime provides more clarity about what businesses can expect, but also makes clear that the best outcome is reserved for the first mover. In particular:

• Speed is critical: the first to report stands to gain the most. Delaying could mean losing out on immunity and facing higher penalties
• Directors may face greater personal risk if their company is not the first to apply
• Public procurement opportunities may be lost for those not qualifying for full immunity

At the same time, whilst leniency can provide protection against penalties arising from a CMA infringement decision, it does not fully protect against follow-on damages actions. In its response to the recent UK government consultation on the opt-out collective actions regime, the CMA argued for the granting of full immunity from private damages actions to first-in immunity applicants, as a means of incentivising early applications. However, the outcome of that process is not yet known.

A clearer, more predictable regime?

The revised guidance contains a number of other changes aimed at incentivising leniency applications and smoothing the process - for example, applicants are no longer required to admit participation in cartel activity until a leniency agreement is signed. In addition, the CMA has introduced an online application process, streamlining submissions (while maintaining the option for oral applications where justified).

Overall, the updates and changes made by the CMA should provide greater clarity and predictability for potential applicants, while ensuring that the most significant incentives are reserved for those who come forward first. In particular, by creating a sharper separation between Type A and Type B/C applicants, the CMA aims to encourage early self-reporting and cooperation, strengthening its ability to detect and deter cartel activity.

For further information or to discuss the implications of these changes, please contact the Hogan Lovells competition team.

Authored by Christopher Hutton and Karman Gordon.