In late November, the Digital Markets, Competition and Consumers Act 2024 (Commencement No. 1 and Savings and Transitional Provisions) Regulations 2024 (SI 2024/1226) were published. They bring most digital markets and competition sections of the Act (that were not already in force) into force on 1 January 2025.
The new digital markets regime gives the CMA the power to designate undertakings as having strategic market status for a digital activity and, having designated firms with SMS, to impose conduct requirements on them. The CMA will also, after investigating a firm, be able to intervene to promote competition through pro-competition interventions if it takes the view that activities of a designated undertaking are having an adverse effect on competition. The Act also includes a duty for designated undertakings to report certain mergers and to produce compliance reports. It also gives the CMA investigatory and enforcement powers.
With regard to competition law, the Act makes changes to the CMA’s powers to investigate and enforce against infringements (including suspected infringements) of the Chapter I and II prohibitions in the Competition Act 1998. It also amends the Enterprise Act 2002 merger jurisdictional thresholds. In addition, it includes procedural changes to merger reviews and introduces a new regime for foreign takeovers of newspapers. It also makes amendments to the procedures for market studies and investigations under the Enterprise Act. These include a new power for the CMA to carry out trials of certain remedies before deciding their final form.
The Act also amends the CMA’s power to require the production of information held electronically as well as including new rules about civil penalties and the extra-territorial reach of information notices for competition matters.
Additionally, the Act includes some general provisions, including about investigative assistance for overseas regulators, disclosing information overseas, a duty of expedition on the CMA and sectoral regulators, and new powers for the CMA to gather information about motor fuel competition.
In April 2025, the government expects to commence Part 3 of the Act, which contains the consumer enforcement regimes, and Part 4, Chapter 1, which replaces the Consumer Protection from Unfair Trading Regulations 2008. The rules about subscriptions are due to come into force in the spring of 2026.
Some provisions are already in force: those relating to foreign acquisitions of newspapers (which entered into force on 24 May 2024) and energy network mergers (which entered into force on 24 July 2024).
The Department of Business and Trade has also published the government’s response to consultations about three regulations, which have now been finalised and laid before parliament. The regulations set out how turnover should be estimated or calculated and the circumstances in which a person is considered to have control over an enterprise.
