Which of the following is a responsibility of the CMA?

The responsibility of the Competition and Markets Authority (CMA) is to promote competition for the benefit of consumers and to investigate mergers, acquisitions, or other practices that could restrict competition within the market. This includes evaluating proposed mergers to determine whether they might lead to a significant lessening of competition, which could harm consumer choices, increase prices, or stifle innovation.

Understanding the significant role of the CMA in investigating mergers highlights its commitment to maintaining a competitive market landscape, ensuring that no single entity can dominate the market to the detriment of consumers and other businesses. This is particularly important in preserving fair market conditions and encouraging healthy competition, which ultimately benefits consumers through better prices and choices.

The other choices do not accurately reflect the role of the CMA. The CMA does not provide grants for businesses or set prices for essential goods, as that would fall outside its mandate focused on competition and market integrity. Moreover, rather than encouraging monopolies, the CMA's function is to prevent them, as monopolistic practices can lead to market inefficiencies and negatively impact consumers.