Digital Markets, Competition and Consumers Act 2024

The Digital Markets, Competition and Consumers Act 2024 is described on its own face as 'An Act to provide for the regulation of competition in digital markets; to amend the Competition Act 1998 and the Enterprise Act 2002 and to make other provision about competition law; to make provision relating to the protection of consumer rights and to confer further such rights; and for connected purposes.' Its centrepiece digital markets regime, as CMA guidance explains, 'enables the CMA to promote competition in fast-moving digital markets, while protecting UK consumers and businesses from unfair or harmful practices by the very largest technology firms.'

The Act's key innovation is the Strategic Market Status (SMS) designation, reserved for the largest firms. CMA guidance sets out the designation conditions: 'UK turnover of more than £1 billion or global turnover of more than £25 billion,' 'substantial and entrenched market power in relation to the digital activity,' and 'a position of strategic significance.' An SMS investigation 'usually lasts 9 months,' running through 'launch of the designation investigation,' consultation, a proposed decision, further consultation and a final decision, and designations are 'time-bound for review every 5 years.' Once a firm is designated, 'it will have 2 key tools' applied to it: 'conduct requirements and pro-competition interventions.'