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Consultation Response: a new pro-competition regime for digital markets

11 May 2022

Proposing MP
Mid Bedfordshire
Type
Written Ministerial Statement
Department
Department for Digital, Culture, Media and Sport

At a Glance

Issue Summary

The statement addresses the establishment of a new pro-competition regime for digital markets to boost competition, drive innovation, and protect consumers from powerful tech firms.

Action Requested

The government has published its response to the consultation, outlining how the new pro-competition regime will work, including designation criteria, conduct requirements, enforcement powers, and merger reporting requirements. The Digital Markets Unit (DMU) housed within the Competition and Markets Authority (CMA) will oversee and enforce this regime.

Key Facts

  • The response builds on a public consultation that closed on 1 October 2021.
  • Designated firms with Strategic Market Status must comply with new binding conduct requirements to manage market power.
  • Enforcement powers include financial penalties of up to 10% of a firm’s global turnover for breaches.
  • The regime will partially recoup costs through levy funding.
Assessment & feedback
Summary accuracy