Draft legislation is currently going
through parliament that will help to promote competition and protect consumers,
including new rules laws relating to digital markets.
The Digital Markets, Competition and
Consumers (DMCC) Bill will promote growth in the UK economy by ensuring free
and vigorous competition amongst businesses - both online and on the high
street. It will also strengthen the power of the Competition and Market Authority to crack down on unfair practices.
The bill reinforces the key principles
that underpin the work of CMA, which are about helping people, businesses and the economy. The bill has 3
areas of focus:
1. Consumer protection: People need to
be able to shop without fear of being ripped off and fair-dealing businesses
should be able to compete without being disadvantaged by those who break the
rules. The CMA has taken enforcement action against those who use unfair
practices to dupe people into handing over their money - taking action on fake
reviews, subscription traps and pressure selling. The new rules in this bill
will allow the CMA to be even more effective. They will empower the CMA to
decide when consumer law has been broken, rather than having to take each case
to court. This will help ensure people are protected more quickly, and
fair-dealing firms are not disadvantaged. The bill will also allow the CMA to
fine businesses which do break the law up to 10% of their global turnover.
2. Digital markets: People and
businesses benefit from vibrant, competitive digital markets which offer the
latest products and services. The bill establishes a new, targeted regime built
for the digital age, overseen by the Digital Markets Unit (DMU) in the CMA -
that will use a proportionate approach to hold digital firms accountable for
their actions - enabling all innovating businesses to compete fairly. It will
set rules that will prevent firms with Strategic Market Status from using their
size and power to limit digital innovation or market access - ensuring the UK
remains a highly attractive place to invest and do business for all.
3. Competition: Bolstered
investigative and enforcement powers will mean the CMA can conduct faster and
more flexible competition investigations, which identify and stop unlawful
anticompetitive conduct more quickly. Changes to the competition framework -
including updated merger and fine thresholds - will make it easier for the CMA
to take action against mergers which harm UK consumers and businesses. Such
changes will allow the CMA to continue to protect and promote open and free
markets, spurring companies to innovate and bring more products to market,
providing more choice for customers and creating a strong foundation for
economic growth.
Sarah Cardell, Chief Executive of the
CMA, said: “People rely on free and fair markets to get the best deal possible,
but also expect that rules are in place to protect them when things go wrong.
Proposals to give the CMA stronger enforcement powers when firms break consumer
law - including the ability to directly impose fines for the first time - are
crucial to ensure we can continue cracking down on rip-offs and underhand
deals, helping to deter firms from taking advantage of people.”
She added that: “Digital markets offer
huge benefits, but only if competition enables businesses of all shapes and
sizes the opportunity to succeed. This bill is a legal framework fit for the
digital age. It will establish a tailored, evidenced-based and proportionate
approach to regulating the largest and most powerful digital firms to ensure
effective competition that benefits everyone.”
To see hundreds more articles click here to visit our archive