Platforms & media
The Digital Markets, Competition and Consumers Act (DMCC Act)
What is the purpose of the DMCC Act?
The DMCC Act is a UK Act of Parliament that reforms the consumer protection and competition regimes in the UK, introducing new and expanded powers for the Competition and Markets Authority (CMA) including the power to take direct enforcement action for breaches of consumer rules.
Key provisions
Consumer protection
- The Act repeals and restates the EU-derived Consumer Protection from Unfair Trading Regulations 2008 (CPUT or CPR), which initially implemented the Unfair Commercial Practices Directive into UK law. CPUT is replaced with similar but enhanced provisions, meaning that this aspect of UK law will diverge from EU law.
- There are new provisions to tackle drip pricing and fake reviews; the 'total price' of a product or service must be provided in any 'invitation to purchase' without the need to establish an impact on the consumer's transactional decision; and fake reviews are now included within the list of specifically banned practices that are considered unfair in all circumstances.
- There is also a new regime for subscription contracts including additional obligations on providers to provide certain pre-contract information, reminder notices and mechanisms for cancellation.
- There are changes to various definitions and other provisions which, although not extensive, will have an impact in certain cases.
- The CMA has been provided with new powers to enforce consumer law directly through the imposition of fines of up to £300,000 or, if higher, 10% of a trader's worldwide annual turnover and the ability to award compensation to consumers, all without the need to go to court. The CMA has indicated that it intends to use its powers to fine traders.
Competition
- The DMCC Act creates a new framework to regulate businesses that have a notable presence in the digital market, overseen by the Digital Markets Unit (DMU), a specialised unit in the CMA.
- 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.
- New thresholds and procedures for M&A have been introduced, in particular to capture so called ‘killer acquisitions’.
- 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.
Who will have obligations under DMCC Act?
All companies selling online will have some obligations under the consumer law provisions of the DMCC Act.
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 Act will allow for the CMA regulator to impose fines of up to £300,000 or, if higher, 10% of a company's global turnover to any businesses that don’t comply with the Act.
Timing
Most of the DMCC Act consumer law provisions are set to apply from 6 April 2025, with the notable exception of the new subscription contact regime which will apply from Spring 2026.
The competition regime came into force on 1 January 2025.
