The Competition and Markets Authority has set out initial plans for the new digital markets competition regime, which came into force at the start of the year.
Its chief executive Sarah Cardell said the new rules could “ensure a level playing field for the many startups and scaleups across the UK tech sector” while also promoting investment and innovation from Big Tech.
Under the new rules, the CMA may designate firms with ‘Strategic Market Status’ in relation to a particular digital activity and impose conduct requirements upon them or introduce pro-competition interventions.
It expects to launch SMS designation investigations in relation to two areas of digital activity in January, with an investigation into a third beginning towards the middle of the year.
Each designation investigation must be completed within a statutory time limit of nine months.
It says the new regime could prevent large firms from preferencing their own services or using their access to customer data to give themselves an unfair advantage, shutting out smaller competing businesses; make it easier for people to switch digital service providers without losing access to data or content; ensure businesses that are dependent on major digital ecosystems can access the data and functionality they need to innovate, and to bring to market new products and services; and stimulate more investment and innovation.
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“The new digital markets competition regime provides a unique opportunity to harness the benefits of investment and innovation from the largest digital firms whilst ensuring a level playing field for the many startups and scaleups across the UK tech sector,” said Cardell.
“It will ensure that the multitude of UK businesses and consumers who depend on these large firms for critical products and services benefit from more innovation, more choice and more competitive prices.
“We are committed to ensuring that this regime delivers for the UK – driving benefits for UK consumers and businesses while stimulating investment, innovation and growth across the UK tech sector.
“The regime has been carefully designed to ensure that the UK keeps pace with future developments and maximises its international attractiveness to innovators and investors in these dynamic markets.”