Policy Briefing — UK Digital Markets, Competition and Consumers Act prepares CMA enforcement
The UK’s Digital Markets, Competition and Consumers Act 2024 equips the CMA’s Digital Markets Unit with designation powers, binding conduct requirements, and civil penalties for breaches as implementation steps commence through late 2024.
Executive briefing: Royal Assent for the Digital Markets, Competition and Consumers Act 2024 on 24 May 2024 triggers a staged implementation that accelerates through late 2024. The Competition and Markets Authority (CMA) will begin designating firms with Strategic Market Status (SMS), imposing tailored conduct requirements, and enhancing consumer protection enforcement once commencement regulations take effect.
Regulatory levers
- Strategic Market Status. The CMA can designate firms with substantial and entrenched market power in digital activities, setting bespoke conduct requirements covering self-preferencing, interoperability, and fair trading.
- Pro-competition interventions. New powers allow the CMA to mandate interoperability, data access, or separation remedies where conduct requirements are insufficient.
- Consumer enforcement. The Act introduces direct civil penalties of up to £300,000 or 10% of global turnover for breaches of consumer law such as subscription traps and fake reviews.
Program actions
- Designation readiness. Assess whether UK digital services meet the SMS thresholds and map potential conduct obligations to existing compliance controls.
- Market investigations. Prepare data rooms and governance checkpoints to respond to CMA information requests within statutory deadlines.
- Consumer journey reviews. Audit subscription flows, cancellation journeys, and default settings against the Act’s strengthened consumer protection provisions.
Sources
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