London, January 7, 2025 – The UK Competition and Markets Authority (CMA) has announced its initial plans for the newly enacted digital markets competition regime, designed to enhance innovation, investment, and growth in the UK’s tech sector. The regime, which came into effect on January 1, 2025, aims to ensure fair competition for businesses and better deals for consumers in critical digital markets.
Aims of the Regime
The Digital Markets, Competition and Consumers Act, passed in May 2024, empowers the CMA to designate firms with “Strategic Market Status” (SMS) in specific digital activities. These designations will allow the CMA to impose conduct requirements and introduce pro-competition interventions to level the playing field.
The CMA’s goals include:
- Preventing Anti-Competitive Behavior: Stopping large firms from unfairly promoting their services or using customer data to gain an advantage.
- Facilitating Consumer Choice: Making it easier for consumers to switch providers without losing data or content.
- Encouraging Innovation: Ensuring businesses can access data and functionality to develop new products and services.
- Driving Growth: Stimulating competition to benefit UK startups and scale-ups.
Immediate Plans
The CMA has outlined key activities for the first six months of the regime:
- SMS Investigations: Launching investigations into two areas of digital activity in January, with a third investigation expected later in the first half of the year. Each investigation will be completed within a nine-month statutory timeframe.
- Consulting on Conduct Requirements: Developing rules for designated firms to promote competition and deliver benefits to consumers and businesses.
Transparent and Proportional Approach
CMA Chief Executive Sarah Cardell emphasized the importance of collaboration and fairness in implementing the regime. “This is a unique opportunity to harness the benefits of investment and innovation from the largest digital firms while ensuring a level playing field for UK businesses,” she said.
Cardell added that the regime aims to make the UK a leader in digital innovation while protecting consumer interests and maintaining a competitive market.
Background
The CMA’s Digital Markets Unit (DMU), established in 2021, has been instrumental in preparing for the regime. The DMU has built expertise in digital markets and collaborated with tech experts to ensure the regime’s readiness.
The CMA has pledged to work transparently and engage stakeholders throughout the process, ensuring the new rules are effective and innovation-driven.
For more details, visit the CMA’s digital markets explainer page or contact the CMA press office.
Guidance on how the UK’s digital markets competition regime works can be found here: https://www.gov.uk/guidance/how-the-uks-digital-markets-competition-regime-works
