The UK government has issued a statement in the UK parliament about the planned implementation of the Digital Markets, Competition and Consumers Act 2024, which received Royal Assent on 24 May 2024:
- Part 1 of the Act will establish a pro-competition regime for digital markets.
- Part 2 amends the competition regime.
- 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.
The government recognises the importance of implementing the Act as soon as possible. It also acknowledges that those affected by the Act need to know when its changes will come into effect, so it is setting out its 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 aims 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. The commencement order will be made at least 28 days before the commencement date.
In April 2025, the government expects 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 Consumer Protection from Unfair Trading Regulations 2008. 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 the government says that 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 according to the government, 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 aim to deliver the Act’s benefits as quickly as possible, while allowing those that will be affected by them adequate time to prepare.
