Platforms & media

The Digital Markets, Competition and Consumers Act (DMCC)

What is the purpose of the DMCC?

The DMCC is a UK Act of Parliament that aims to ensure competition and fair treatment of consumers in digital markets. The DMCC amends the Competition Act 1998 and the Enterprise Act 2002 and supplements the Consumer Rights Act 2015. The DMCC grants new and expanded powers to the Competition and Markets Authority (CMA) in respect of digital markets, competition and consumer protection.

The new rules in the Act allow the CMA to decide when consumer law has been broken, rather than taking each case to court.

Key provisions

The DMCC creates a new framework to regulate businesses that have a notable presence in the digital market, overseen by the Digital Markets Unit (a specialised unit in the CMA).
The CMA's investigation and enforcement powers have been significantly strengthened with new powers granted including the ability to impose significant penalties for non-compliance with market investigation orders.
In the field of consumer law there is a focus on drip pricing and the prohibition of practices relating to fake reviews which are now included within the blacklisted practices that are considered unfair in all circumstances under consumer law.
The CMA has now been provided with powers to enforce consumer law directly through the imposition of fines and the ability to award compensation to consumers.
Changes have been introduced to the competition framework, making it easier for the CMA to take action against mergers harming UK consumers and businesses.

Where will DMCC apply?

The DMCC will apply to firms operating in the United Kingdom, wherever they are incorporated, with a global turnover above GBP25 billion, or a UK turnover above GBP1 billion.

Who will have obligations under DMCC?

All companies selling online will have some obligations under the consumer law provisions of the DMCC.

A new digital compliance regime will apply to firms whose group turnover exceeds GBP25 billion or whose UK turnover exceeds GBP1 billion if they have 'substantial and entrenched' market power and a 'position of strategic market significance' in at least one digital activity. They will be designated as having 'strategic market status' (SMS) which will mean they have mandatory reporting obligations on large transactions and an enforceable code of conduct tailored to their particular business.

Are there sanctions for non-compliance?

For non-compliance, the bill will allow for the CMA regulator to impose fines of up to 10% of a company's global turnover to any businesses that don’t comply with the bill.