UK Competition Law Reform: A New Era for Competition and Consumer Protection
Introduction
In a landmark move, the UK government has announced plans to overhaul competition and consumer protection laws, marking the most significant reform in over two decades. The new Digital Markets, Competition and Consumer Bill (DMCC Act) will introduce a raft of changes, expanding the scope of competition law and strengthening the enforcement powers of regulatory bodies.
Expansion of Prohibition on Anti-Competitive Agreements
One key aspect of the DMCC Act is the expansion of the Chapter I prohibition on anti-competitive agreements under the Competition Act 1998. This provision will now apply to agreements that have an "effect" within the UK, even if the parties to the agreement are located outside the country.
Enhanced Enforcement Powers
The new law will also grant the Competition and Markets Authority (CMA) enhanced enforcement powers. The CMA will have the authority to impose fines of up to 10% of a company's annual worldwide turnover for breaches of competition law. It will also have the power to order companies to divest assets and businesses.
New Digital Markets Regulation
In recognition of the growing importance of digital markets, the DMCC Act will introduce a new regulatory framework for digital markets. This framework will give the CMA powers to designate certain platforms as "strategic market status" (SMS) companies.
SMS companies will be subject to additional rules and regulations, such as:
- A prohibition on self-preferencing
- A requirement to share data with competitors
- A ban on certain acquisitions
Conclusion
The DMCC Act represents a significant shift in the UK's approach to competition and consumer protection. The new law will expand the scope of competition law, strengthen the enforcement powers of regulatory bodies, and introduce a new regulatory framework for digital markets. These changes are expected to have a major impact on businesses operating in the UK, as well as on consumers.
For further information on the DMCC Act, please consult the government's website or contact a competition law specialist.
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