UK's Competition and Markets Authority Outlines New Digital Markets Competition Regime

The new rules aim to prevent large tech companies from using their market power to gain an unfair competitive advantage, with stricter requirements for supporting competitors' products.

The UK's Competition and Markets Authority (CMA) has outlined plans for a new digital markets competition regime, which will impose stricter requirements on large tech companies to support competitors' products.
The new rules will only apply to firms designated by the CMA as having Strategic Market Status (SMS), following an investigation and public consultation. Firms will be classified as SMSs if they have substantial and entrenched market power in a digital activity linked to the UK, a position of strategic significance and global turnover of more than £25 billion or UK turnover of more than £1 billion.
The CMA expects to start evaluating three or four companies for SMS status within a year of the new regime coming into force. If it decides that a firm is abusing its position to gain an unfair advantage, it will impose certain conduct requirements.
Companies could be prevented from giving preference to their own products and services, or required to provide competitors with greater access to data and functionality. They could also be required to allow the products and services of other firms to work with their own, or to make sure they provide their users with an effective choice; meanwhile, they could be ordered to trade on fairer terms or required to increase transparency around aspects of their algorithms.
The CMA plans to convene consulting groups representing UK consumers, businesses and tech professionals to help prioritize its work, with nine tech experts appointed last year to help the CMA prepare for the new regime.