GOV UK,CMA sets out initial plans as new digital markets competition regime comes into force

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CMA Sets Out Initial Plans as New Digital Markets Competition Regime Comes into Force

Date: 2025-01-07 11:00

Source: GOV UK

Summary:

The Competition and Markets Authority (CMA) has published its initial plans for implementing the new Digital Markets, Competition and Consumer (DMCC) regime, which came into force on 1 January 2023. The DMCC regime is designed to address the competition concerns posed by large digital platforms that have significant market power.

Key Points:

  • The CMA will designate a small number of “Category 1 platforms” that will be subject to the most stringent regulations under the DMCC regime. These platforms will be identified based on their significant market power, their impact on competition, and their potential to harm consumers.
  • Category 1 platforms will be required to comply with a set of codes of conduct that will prohibit anti-competitive practices, such as self-preferencing, preventing users from switching to other platforms, and imposing unfair terms and conditions on businesses.
  • The CMA will also have the power to impose fines of up to 10% of a Category 1 platform’s global turnover for breaches of the DMCC regime.
  • The CMA will consult on the designation of Category 1 platforms and the development of the codes of conduct in the coming months. It is expected that the first Category 1 platforms will be designated in the second half of 2023.
  • The DMCC regime is part of the government’s wider plans to promote competition and innovation in the digital economy. The government believes that the regime will help to level the playing field for businesses and consumers, and ensure that digital markets are open and fair.

Reaction:

The CMA’s announcement has been welcomed by consumer groups and businesses. However, some technology companies have expressed concerns about the potential impact of the DMCC regime on innovation and investment.

Implications:

The DMCC regime is a significant new development in the regulation of digital markets. It is likely to have a major impact on the way that large digital platforms operate in the UK. Businesses and consumers should be aware of the new regime and its implications for their activities.

Additional Information:

CMA sets out initial plans as new digital markets competition regime comes into force

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