The UK, like other jurisdictions, has been grappling with how to regulate digital markets, not least in terms of addressing the dominance of 'big tech'. At the same time, it was felt that consumer protection law was time consuming to enforce and did not allow for sufficiently high sanctions to act as a meaningful deterrent. As a result, in the March 2022 Queen's Speech, the government announced a proposed Digital Markets, Competition and Consumer Bill to regulate the market power of digital service providers with "strategic market status". The Bill would also introduce new consumer protections to tackle subscription traps and fake online reviews, while updating the law more widely on competition and consumer protection issues, not least, by increasing the CMA's enforcement powers and sanctions for non-compliance. Over a year later in April 2023, the government published the Digital Markets, Competition and Consumers Bill (DMCC).
The DMCC sets out a regulatory framework for tackling competition issues in big tech, including by:
Provides powers to introduce secondary legislation, particularly with the aim of introducing protections against fake online reviews by prohibiting:
Introduces measures to protect consumers from subscription traps by requiring businesses to:
Reforms protections for consumers from unfair commercial practices (revoking the CPUT Regulations), including by:
Enhances the CMA's enforcement powers, including by allowing it to enforce consumer rights directly and impose penalties for:
The first part of this Bill which deals with competition in digital markets, is the UK's answer to the EU's Digital Markets Act – the concept of a business with "strategic market status" is similar to that of a "Gatekeeper" under the DMA and is likely to catch largely the same businesses.
Businesses deemed to have "strategic market status" will be the most impacted by this legislation. However, there are also more wide ranging reforms to the UK's competition regime.
Relevant consumer-facing online businesses, particularly those which operate subscription models and/or which allow online reviews, will need to review their terms and conditions and processes to ensure they comply with the incoming rules, in the knowledge that the DMCC Bill enhances the CMA's enforcement powers and will bring in significant penalties for non-compliance.
Clearly the Bill is at the start of the legislative process and may change before enactment but we do not anticipate it will change substantively in terms of its overarching aims.
Adam Rendle looks at plans under the UK's Digital Markets, Competition and Consumers Bill to introduce new duties on providers of subscription services, and to give consumers new rights in relation to cooling-off periods and cancellations.
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Oz Watson and Louise Popple look at changes to the unfair commercial practices regime under the UK's Digital Markets, Competition and Consumers Bill.
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Debbie Heywood looks at Part 3 of the Digital Markets, Competition and Consumers Bill, which introduces direct enforcement powers for regulators and significant fines for non-compliance with consumer protection law.
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Paolo Palmigiano looks at the plans under the DMCC Bill to regulate digital markets in the UK and reform the UK's competition framework.
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