Digital Markets, Competition and Consumers Bill introduced into Parliament today
The government is taking action to tackle market dominance of big tech companies by introducing The Digital Markets, Competition and Consumers (DMCC) Bill.
Firms with substantial and entrenched market power, in at least one digital activity, providing them with a strategic position, will be designated with Strategic Market Status (SMS) by the Digital Markets Unit (DMU) at the Competition and Markets Authority (CMA), and will be subject to the new regime. Firms with a global turnover above £25bn, or UK turnover above £1bn, will be in scope.
The legislation will be introduced into the House of Commons today. One of the aims of the Bill is to provide more transparency for individuals when using digital services, for example, an easy way out of subscriptions.
The Bill will provide the CMA with stronger tools to investigate competition issues. The DMU will be able to fine companies up to 10% of their global turnover.
Sarah Cardell, Chief Executive of the CMA said: “Digital markets offer huge benefits, but only if competition enables businesses of all shapes and sizes the opportunity to succeed. This bill is a legal framework fit for the digital age. It will establish a tailored, evidenced-based and proportionate approach to regulating the largest and most powerful digital firms to ensure effective competition that benefits everyone.”
The ICO has recognised the strong synergies that exist between the aims of competition and data protection, and cooperates with the CMA both bilaterally and through the Digital Regulation Cooperation Forum (DRCF).