Digital Markets, Competition and Consumers Act 2024

Justin Madders Excerpts

Monday 9th September 2024 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

The Digital Markets, Competition and Consumers Act received Royal Assent on 24 May 2024. The Act will make significant changes to the UK’s competition and consumer landscape that will protect small businesses, save consumers money, boost innovation and drive growth.

Part 1 of the Act will establish a pro-competition regime for digital markets that will promote more dynamic markets and ensure the most powerful tech firms treat consumers and business fairly.

Part 2 makes several enhancements to our wider competition regime, to give the Competition and Markets Authority greater powers in tackling illegal, anti-competitive, behaviours and to focus competition regulation on the areas of greatest potential harm.

Parts 3 and 4 strengthen the enforcement of consumer law and introduce new consumer protections, including tackling fake reviews and drip pricing, new rules for consumer saving schemes and introducing new rights relating to subscription contracts.

Part 5 contains miscellaneous measures including provisions which deal with investigative assistance to overseas regulators, disclosing information overseas, providing for a duty of expedition on the CMA and sectoral regulators, and giving the CMA new information gathering powers to support a function of monitoring competition in the retail motor fuel sector in the UK.

A key focus of the Act is providing greater powers and responsibilities for the CMA, the UK’s primary independent competition and consumer protection authority. This will help the CMA meet the challenges of the modern economy.

The Government recognise the importance of implementing the Act as soon as possible so that businesses and consumers can reap its benefits. We also understand those affected by the Act need to know when its changes will come into effect. That is why the Government are publicly setting out our plans for implementation.

Key steps must be taken to implement the Act. Secondary legislation must be laid in Parliament, under powers set out in the Act, before the Act’s measures can be commenced and enter into force. The CMA must publish guidance setting out how it will carry out its functions and use its powers. The Secretary of State for Business and Trade must approve CMA digital markets guidance. The Government are working closely with the CMA to ensure these are in place as soon as possible. Of equal importance is the need for secondary legislation and guidance to be detailed, robust and clear to ensure the Act’s changes are understood and can be complied with.

The Government aim to commence parts 1, 2 and 5 of the Act in December 2024 or January 2025. In the autumn, secondary legislation will be laid before Parliament for scrutiny before it enters into force. Commencing part 1 will bring the digital markets regime into effect, and we expect the CMA to launch the first strategic market status investigations shortly afterwards. The reforms to the existing competition regime, the new motor fuels function and other part 5 measures will take effect on the commencement date.

The commencement order will be made at least 28 days before the commencement date.

In April 2025, the Government expect to commence part 3 of the Act, which provides for the consumer enforcement regimes, and part 4, chapter 1 of the Act, which replaces the unfair trading regulations. Secondary legislation will set out rules for the CMA’s new direct enforcement powers, alongside guidance on these new powers. New savings schemes rules will not commence before April 2025, and this timeline is subject to continuing engagement with consumers and industry. Reforms to subscriptions contracts and alternative dispute resolution will follow later, with subscriptions reforms not commencing before spring 2026, at the earliest. These timelines follow commitments made in the previous Parliament, and reflect the quickest possible delivery of the reforms, while ensuring that the necessary consultation and other steps can take place.

The Government’s implementation plans will deliver the Act’s benefits as quickly as possible, while ensuring its changes enter into force smoothly, allowing those that will be affected by them adequate time to prepare.

[HCWS74]