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Digital Markets, Competition and Consumers Bill - Sitting 6

20 June 2023

Proposing MP
Philip Hollobone Con
Kettering
Type
Public Bill Committee

At a Glance

Issue Summary

The discussion focuses on the enforcement provisions in Clauses 26 to 35 of the Digital Markets, Competition and Consumers Bill. The statement discusses clauses related to the Digital Markets, Competition and Consumers Bill, focusing on the Conduct Investigation provisions outlined in clause 26. MP Philip Hollobone discusses the Digital Markets Unit's ability to accept voluntary commitments from firms during conduct investigations. Philip Hollobone is discussing several government amendments related to the Digital Markets, Competition and Consumers Bill. The statement discusses clauses in the Digital Markets, Competition and Consumers Bill that allow the Digital Markets Unit (DMU) to use a final offer mechanism as an enforcement measure for resolving breaches of fair payment terms by Significant Market Sellers (SMS) firms. The MP discusses provisions of the Digital Markets, Competition and Consumers Bill related to regulating agreements between UK news media and digital platforms. The discussion is about the efficacy of the final offer mechanism and its inclusion in the Competition and Markets Authority's review.

Action Requested

No specific action is requested. The clauses aim to empower the digital markets unit (DMU) with investigation powers and establish a framework for conducting investigations, closing them, imposing enforcement orders, and monitoring their effectiveness. This ensures SMS firms comply with conduct requirements and promotes competition for consumer benefit.

Key Facts

  • Clauses 26 to 35 are about enforcing conduct requirements against strategic market status (SMS) firms.
  • The DMU can investigate suspected breaches of conduct requirements under Clause 26.
  • Clauses include provisions for closing investigations, countervailing benefits exemptions, notification duties, enforcement orders, interim measures, revocation powers, and monitoring effectiveness.
  • Clause 26 outlines circumstances for CMA to begin investigations into suspected breaches.
  • Subsections (3) and (4) require the CMA to notify businesses about investigation details.
  • The six-month timeframe for statutory investigations is mentioned.
  • Clause 36 allows the DMU to accept commitments from firms during conduct investigations.
  • Schedule 1 sets out procedures for accepting, varying or revoking commitments.
  • The DMU must consider representations before making decisions on commitments.
  • Government amendments redefined the scope of 'transaction' in clauses 38 to 41.
  • New clause requires the Competition and Markets Authority (CMA) to produce an annual report on the final offer mechanism.
  • The first report must be published within one year of the Act being passed.
  • Clauses 38 to 43 allow the DMU to use a final offer mechanism as a backstop enforcement measure.
  • Government amendment 7 ensures final offer payment terms are given effect for transactions without specifying exact terms.
  • Amendment 10 and new clause 1 enable the DMU to end the final offer process if there is a material change in circumstances.
  • The upper time limit for the entire final offer process is six months, with potential future amendments by the Secretary of State.
  • The DMU can impose conduct requirements for fair and reasonable terms.
  • Google and Meta’s market power is estimated to deprive publishers of £1 billion annually.
  • Clause 39 sets out a final offer mechanism for arbitrating payment terms between digital platforms and news media providers.
  • Publication of the assessment will be online and public.
  • The Committee ordered clauses 39, 40, 41, 42, and 43 to stand part of the Bill.
  • Amendments were made in clause 40 regarding terms as payment for transactions.
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