CNMC Faces New Powers and Resource Strains Amid Government Expansion
The National Markets and Competition Commission, CNMC, has signaled concern about a wave of new duties assigned by the government of Pedro Sánchez in recent months. The organization’s president has publicly warned that many tasks fall outside the CNMC’s traditional remit as a regulator of competition and market oversight. This friction came to light during an assessment by the Economic Affairs and Digital Transformation Committee of the Congress of Deputies, which reviewed the commission’s activities for the current fiscal year.
The expansion of powers touches various areas, including bank tax audits and VAT deduction controls, as well as pricing signals for certain food products, according to agency sources. Fernández noted that since the CNMC’s inception, and especially in recent years, its functions and powers have grown—often in unexpected ways. For example, last year the agency gained 24 new responsibilities in the energy sector, and the new audiovisual law introduced ten additional powers. He described some of these as distinctly different and outside the agency’s original mandate, ranging from monitoring service station margins to evaluating subsidies for energy network digitization and auditing the impact of different taxes or tax cuts on prices.
Fernández stressed that he is not opposed to adopting relevant new tasks when resources allow. The concern centers on tasks that exceed the commission’s formal powers and could divert it from its core mission as a competition and regulatory body. He recalled Nobel Prize in Economics recipient Jean Tirole, who warned against urging independent supervisory authorities to take on external market duties that do not align with their primary objectives. In his view, misaligned or conflicting goals could undermine the CNMC’s independence and effectiveness.
The CNMC head argued that the agency would meticulously fulfill any emerging function, but also warned about the strain of a perpetual supervisory push. Taking on an unknown function could hamper performance, strain internal resources, and reduce the speed and quality of responses to the sector’s pressing challenges. He emphasized that the agency must protect its ability to prioritize core work and maintain organizational coherence as a critical safeguard for market integrity.
At a policy level, the reform of the CNMC framework and the broader Competition Law has been frozen since October 2021. Nevertheless, Fernández welcomed the inclusion of some key reforms, noting that changes to the financial administration and invoicing processes had begun to take shape. MPs had signaled movements from the Lower House that point to important adjustments, marking a cautious but meaningful shift in how competition authorities adapt to evolving market realities.
In the past year, the CNMC has highlighted substantial consumer savings attributed to its actions, totaling around 2,000 million euros. Of this, approximately 300 million euros stem from targeted decisions in rail transport and airport pricing, while roughly 1,500 million euros relate to the energy sector. These figures exclude the broader deterrent and control effects on illegal practices. Fernández cited concrete examples, such as measures that exposed and countered cases where a company procured electricity and gas customers from rivals while engaging in fraudulent practices. The emphasis is on how enforcement of competition rules translates into tangible benefits for consumers and fairer markets.
The dialogue surrounding new powers raises questions about the balance between regulatory breadth and the CNMC’s ability to deliver efficient, timely interventions. Advocates argue that a carefully calibrated expansion can strengthen oversight and protect consumers in rapidly changing markets. Critics, however, warn that overreach might compromise impartiality or create overlapping responsibilities with other authorities. The ongoing discussion underscores the need for clear statutory boundaries, robust governance, and adequate resources to support both current duties and any future responsibilities that truly align with the CNMC’s core mandate.
As markets continue to evolve with digital transformation and global integration, the CNMC’s role remains pivotal in upholding competitive conduct and safeguarding consumer welfare. The organization’s leadership has consistently signaled a commitment to rigorous enforcement, transparency, and accountability, while calling for reforms that clarify jurisdiction and ensure sustainable operations. The balance between expanding influence and preserving a focused regulatory framework will shape how the CNMC navigates the next phase of market regulation in Spain and beyond.