Digital Markets, Competition and Consumers Bill

Debate between Jeremy Wright and Damian Collins

Consideration of Lords amendments
Tuesday 30th April 2024 Commons Chamber

[Damian Collins]

I will speak briefly on the question that I raised earlier in the debate about the change of language from “appropriate” to “proportionate” and follow on from the remarks of my hon. Friend the Member for Weston-super-Mare (John Penrose). On one level, what the Minister is saying now—similar to what the Minister in the House of Lords, Lord Camrose, said in the debates there—is that proportionality is implicit in the law anyway and that the rights an organisation would have under article 1 of the European convention on human rights would apply anyway. Ministers are saying that bringing this language into the Bill is therefore a tidying-up exercise that re-emphasises rights that people already have. On another level, Ministers are also saying that this change creates a better balance, which means that there will be some change in how things work. It is important at this point that the House is clear about what is intended with this change.

There is a concern that the change effectively opens up a full merits appeal basis, which we have been keen to avoid doing in all the debates on this Bill as it has gone through both Houses. The Government have rightly resisted calls from big tech companies to bring that in, because it is a recipe for multiple and lengthy litigations, just as with every single measure of tech regulation that exists as a whole. That is not the intention.

Let us say that a company may be guilty of overcharging in an app store, but the cost to the consumer is relatively low. Would an intervention from the CMA be proportionate? Overcharging in the mobile app market may exist, but ultimately companies are happy to pay it and it is a relatively small charge. Would a big intervention by the CMA be a proportionate response? There are so many competing priorities, and often the individual consumer cost of some of these measures would be low, but there is the business significance of a company self-preferencing a service to the exclusion of other companies from the market. The company might say, “There is no particular consumer detriment to this, because the price is relatively low”, but it drives strategic market status. We have already seen in the European Union with the Digital Markets Act that the companies are challenging the designation of strategic market status, and they are looking for grounds to challenge at every opportunity, and we must expect that they will do the same thing here as well. That is why we should be clear that we are clear about what we mean.

My hon. Friend the Member for Weston-super-Mare invited the Minister to say that effectively, in terms of enforcement and how the courts should interpret it, the change should not make any difference from the original drafting. He invites the Minister to say that we should not be concerned that moving from “appropriate” to “proportionate” is moving from saying that the regulator should do what is within its rights to do—it is appropriate because it has the power to do it and it has made an intervention based on that power—to saying, “Even if it was appropriate for it to do it, it should not have done it, because it was disproportionate.” What would the grounds for that disproportionality be?

It is really important that the guidance to the legislation makes clear what we should expect on how the CMA can determine to find what it believes are proportionate responses, with that not being easy to dismiss on the grounds that the cost to consumers may be relatively low or the impact limited to a certain area of business.

[Sir Jeremy Wright]

My hon. Friend is, as ever, making a good case. As he knows, I agree with him about the need for the Government to be clear about what these terms really mean. One thing that we are not talking about today but which is linked to the question of definitions is what we mean by “consumer benefit”. Does he agree that there may be a difference between benefit to the current consumer and a benefit to the future consumer and that we should be clear in the Bill, should we not, that “consumer benefit” includes future consumers as well as current ones?

[Damian Collins]

My right hon. and learned Friend makes an important point. We could have a digital service provided for free, self-preferenced by a big company, offering a new service to its customers—how could there be a consumer detriment in that? But a consequence of that could be constriction of the market and the driving out of other businesses. The mobile mapping market is a really good example: Google Maps and Apple Maps totally dominate a market that used to have multiple competing companies in it. Now it does not, and there could be future consumer detriment in that.

That is why it is important that this is an ex-ante regime, which anticipates not just the detriment that may exist now, but future consequences. That is such an important principle for digital markets, which have tended to see the consolidation of market power in the hands of a relatively small number of players, who often do not compete against each other directly but dominate certain sections of the market, be it through the mobile ad market, search and retail.

There are only in effect two app stores, and given the lack of interoperability, they are virtually monopolies. We see those things already, and the development of large language model systems and the massive acquisition of data required for AI to run them is consolidating that market largely into the hands of the five or six companies that have enough data to be effective operators within it. That means that, in the future digital market world, any challenger tech developer will have to access its market and customers through the services provided by a relatively small number of companies. That is important.

I would be grateful if the Minister said in winding up whether he believes that the Bill offers a better balance. Has that balance changed, or has it not, and it is just a question of language and interpretation of meaning? What does it mean? I hope we all agree that, through making this change, we are not seeking to open up the legislation to wider judicial challenge, with more ruling through the courts, more lengthy delays and costs to try to bring forward the CMA’s interventions.

Online Safety Bill

Debate between Jeremy Wright and Damian Collins

Report stage
Tuesday 12th July 2022 Commons Chamber

[Damian Collins]

Thank you, Mr Speaker. I am honoured to have been appointed the Minister responsible for the Online Safety Bill. Having worked on these issues for a number of years, I am well aware of the urgency and importance of this legislation, in particular to protect children and tackle criminal activity online—that is why we are discussing this legislation.

Relative to the point of order from my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), I have the greatest respect for him and his standing in this House, but it feels like we have been discussing this Bill for at least five years. We have had a Green Paper and a White Paper. We had a pre-legislative scrutiny process, which I was honoured to be asked to chair. We have had reports from the Digital, Culture, Media and Sport Committee and from other Select Committees and all-party parliamentary groups of this House. This legislation does not want for scrutiny.

We have also had a highly collaborative and iterative process in the discussion of the Bill. We have had 66 Government acceptances of recommendations made by the Joint Committee on the draft Online Safety Bill. We have had Government amendments in Committee. We are discusssing Government amendments today and we have Government commitments to table amendments in the House of Lords. The Bill has received a huge amount of consultation. It is highly important legislation, and the victims of online crime, online fraud, bullying and harassment want to see us get the Bill into the Lords and on the statute book as quickly as possible.

[Sir Jeremy Wright (Kenilworth and Southam) (Con)]

I warmly welcome my hon. Friend to his position. He will understand that those of us who have followed the Bill in some detail since its inception had some nervousness as to who might be standing at that Dispatch Box today, but we could not be more relieved that it is him. May I pick up on his point about the point of order from our right hon. Friend the Member for Haltemprice and Howden (Mr Davis)? Does he agree that an additional point to add to his list is that, unusually, this legislation has a remarkable amount of cross-party consensus behind its principles? That distinguishes it from some of the other legislation that perhaps we should not consider in these two weeks. I accept there is plenty of detail to be examined but, in principle, this Bill has a lot of support in this place.

[Damian Collins]

I completely agree with my right hon. and learned Friend. That is why the Bill passed Second Reading without a Division and the Joint Committee produced a unanimous report. I am happy for Members to cast me in the role of poacher turned gamekeeper on the Bill, but looking around the House, there are plenty of gamekeepers turned poachers here today who will ensure we have a lively debate.