The UK announces legislation to tackle the “excessive dominance” of Big Tech by empowering the CMA's Digital Markets Unit, expected to become law in 2024
Global companies like Google, Apple and Amazon could have to pay penalties of up to 10% of their global turnover as government gives competition watchdog more power
The significance is institutional: the CMA’s specialist digital unit would move from a policy design effort toward an enforcement body with meaningful sanctioning leverage over Google, Apple and Amazon.
First-order effects
Google, Apple and Amazon face the prospect of binding CMA intervention and penalties reaching 10% of global turnover, raising the cost of non-compliance in UK digital markets.
The Digital Markets Unit gains a clearer statutory basis to scrutinize and remedy conduct by designated large platforms rather than relying solely on conventional competition cases.
Second-order effects
Affected platforms are likely to devote more legal, product-policy and compliance capacity to UK-facing business practices, especially where a platform controls access to users or business customers.
Smaller digital businesses and app developers gain a more credible domestic route to challenge platform conduct, while the CMA becomes a more consequential counterpart in commercial disputes.
Third-order effects
If implemented and enforced consistently, the UK shifts toward ex ante oversight of platform gatekeepers: market access and platform rules become subjects of ongoing supervision, not only retrospective antitrust litigation.
The model could make national digital regulation a durable constraint on globally standardized platform operations, though its practical force will depend on how the CMA defines and applies its powers.
The trend: This is one step in the shift from case-by-case competition enforcement toward dedicated, rules-based governance of dominant digital platforms.
We welcome this new draft #legislation, that will enhance our ability to promote #competition and protect consumers, including new powers for our Digital Markets Unit. Read more: https://www.gov.uk/... #digitalregulation https://twitter.com/... https://twitter.com/...
“These interventions risk making the UK a hostile place to invest and innovate.” Our @matthewlesh comments on plans to introduce the Digital Markets Unit: https://twitter.com/...
The legislation aims to rein in BTechs dominance of digital markets, giving regulators powers to impose a new code of conduct on the largest firms. A newly-created Digital Markets Unit will be able to fine tech companies up to 10 percent of global turnover https://www.politico.eu…
Very good new essay collection on innovation. The essay by @DStallibrass and @JohnFingleton1 on regulatory flexibility is timely given the Digital Markets Unit plans. The huge flexibility & discretion it has will make it a big target for rent-seeking. https://www.tenentrepreneurs…
Today we are announcing the new Digital Markets, Competition and Consumers Bill to help consumers get a better deal by: 🔐 Stamping out subscription traps ❌Tackling fake reviews 🛡️ Boosting consumer protection laws 💻 Fairer digital markets https://www.gov.uk/...
As expected, the CMA must designate a firm as having strategic market status (SMS) before it's regulated. The firm must: provide an online content/service, with a UK link, meet turnover thresholds, have substantial/entenched market power, and “strategic significance”. *Breath*/1
This bill is a pivotal step to make markets in the UK work better for consumers, businesses and support economic growth. We have long campaigned for stronger powers for the @CMAgovUK including tough enforcement and the ability to fine firms that break the law directly. https://tw…
📣 Fake reviews and subscription traps are being stamped out to protect consumer cash online 💷 Here's how the new Digital Markets, Competition and Consumers Bill will help consumers get a better deal 👉 https://www.gov.uk/...
Very pleased to see this news and looking forward to seeing the detail of the #DigitalMarkets, Competition and Consumer Bill today. Vital legislation that I hope progresses rapidly through Parliament https://www.gov.uk/...