The UK’s new digital markets system: some key takeaways

This year, the UK Competition and Markets Authority (CMA) is set to gain new enforcement powers under the Digital Markets, Competition and Consumers (DMCC) Bill, which received Royal Assent on 24 May 2024. However, most of the bill’s provisions will not come into force until the implementing legislation is passed. The CMA had initially expected its new duties to come into effect in the autumn, but that date may be delayed by the UK election on 4 July. On the same day that the DMCC Bill became law, the CMA published new guidance on the digital markets competition regime for consultation.

An outline of the key provisions of the DMCC Act is available here . As the CMA prepares to implement its powers under this new regime, here are five practical considerations for businesses operating in the UK:

1. The CMA will manage the new system through a specialist Digital Markets Unit, established more than three years ago.
2. The DMCC may differ from the EU Digital Markets Act in terms of designated companies and the obligations imposed on them.
3. The interaction between the DMCC system and applicable regulations, especially GDPR, may create practical challenges.
4. The CMA is expected to use its digital markets powers alongside the existing antitrust tools that the DMCC amends.
5. The CMA’s jurisdictional thresholds for dealing with mergers under the UK merger control regime will change as a result of the DMCC.

The DMCC Act gives the CMA the power to: (i) designate firms that meet certain thresholds in respect of digital activities as having “Strategic Market Status” (SMS); (ii) impose certain conduct requirements on SMS firms; and (iii) introduce “pro-competitive interventions” where necessary to address competition concerns relating to digital activities.