Parliamentary Under-Secretary of State for Employment Rights,
Competition and Markets (): The Digital Markets,
Competition and Consumers Act (the 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
(CMA) 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 recognises 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 is publicly 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 is 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 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. 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 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 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.
