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Digital Markets, Competition and Consumers Bill - Sitting 1

13 June 2023

Proposing MP
Philip Hollobone Con
Kettering
Type
Public Bill Committee

At a Glance

Issue Summary

Philip Hollobone announces the scheduling for the Digital Markets, Competition and Consumers Bill Committee meetings. The statement discusses the Digital Markets, Competition and Consumers Bill's provisions aimed at regulating digital markets to address competition concerns. The statement discusses the Digital Markets Bill's provisions regarding enforcement timelines and judicial review standards. Philip Hollobone addresses the adequacy of resources and capacity within the Competition and Markets Authority (CMA) to handle new responsibilities under the Digital Markets, Competition and Consumers Bill. Philip Hollobone welcomes witnesses from Which? and Citizens Advice to provide evidence on the Digital Markets, Competition and Consumers Bill. The discussion revolves around subscription traps and the effectiveness of the proposed legislation to protect consumers from harmful practices. MP Philip Hollobone is addressing the pace of questioning during the discussion of the Digital Markets, Competition and Consumers Bill. The statement discusses the implications of the Digital Markets, Competition and Consumers Bill on consumer protection and regulatory enforcement.

Action Requested

Hollobone informs the committee about the schedule for upcoming meetings and oral evidence sessions. He also declares that copies of written evidence will be made available in the Committee Room and circulated to Members by email.

Key Facts

  • The Committee is scheduled to meet on multiple dates from June 13th to July 18th.
  • Oral evidence sessions are planned with various organisations and individuals, including the Competition and Markets Authority (CMA).
  • Written evidence received will be reported to the House for publication.
  • The Bill aims to tackle concentration of market power in digital markets.
  • It allows the CMA to designate companies based on specific activities rather than a blanket list of prohibited conduct.
  • The system is designed to be more responsive and future-proofed compared to EU's Digital Markets Act.
  • The Bill sets a six-month time limit for enforcement.
  • The Judicial Review (JR) standard applies to much of the CMA's work, including mergers and market investigations.
  • JR reviews process questions but also examines analytical approaches, evidence review, and decision rationality.
  • Sarah Cardell confirms that the CMA is well-funded with a significant budget.
  • The CMA plans to recruit over 200 additional personnel within two years.
  • The CMA's legal team consists of around 150 people.
  • Philip Hollobone welcomed Rocio Concha and Matthew Upton as witnesses.
  • Rocio Concha is the director of policy and advocacy and chief economist at Which?.
  • Matthew Upton is the acting executive director of policy and advocacy at Citizens Advice.
  • The current legislation is seen as a missed opportunity to address subscription traps.
  • Polling shows that about 80% of people agree with making subscriptions opt-out by default at the end of an annual trial.
  • Trustpilot's evidence highlights the issue of fake reviews on services, not just products.
  • The committee has 12 minutes left for questioning.
  • Five Members are seeking to ask questions.
  • The CMA's ability to fine companies up to 10% of global turnover is mentioned as a deterrent against anti-competitive practices.
  • Witnesses suggest including provisions such as fake reviews and drip pricing within schedule 18 of the Bill for stronger consumer protection.
  • Collective redress for breaches of competition law, but not consumer law, is discussed as an additional deterrent.
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