The Digital Markets, Competition and Consumers Bill (DMCC) is a new piece of legislation that was introduced to the UK Parliament in 2023. The bill aims to regulate competition in digital markets and protect consumer rights.
The second reading is today, the 17th of May 2023.
Reference: https://bills.parliament.uk/bills/3453
It aims to amend the Competition Act 1998 and the Enterprise Act 2002 and to make other provisions about competition law. This is about protecting and enhancing consumer rights in the digital sphere including social media platforms.
The DMCC is still under consideration by Parliament, and it is not yet clear when it will be enacted. However, the bill is likely to have a significant impact on the UK digital economy and wider implications for brands operating within its remit.
Key topics of the DMCC
The DMCC has a number of key provisions that are relevant to marketers. These include:
- The designation of undertakings with strategic market status:
The bill gives the Competition and Markets Authority (CMA) the power to designate undertakings as having strategic market status in respect of a digital activity. This means that the CMA can intervene to prevent these undertakings from abusing their market power. - The imposition of conduct requirements: The bill allows the CMA to impose conduct requirements on designated undertakings. These requirements can be designed to promote competition, protect consumer rights, or ensure that designated undertakings do not abuse their market power.
- The provision of consumer redress: The bill gives consumers the right to seek redress from designated undertakings that have breached the bill's provisions. This redress can include compensation for financial losses, damages for non-financial losses, and the right to have contracts with designated undertakings terminated.
The DMCC is likely to have a significant impact on the way that marketers operate in the UK. For example, the bill could make it more difficult for large digital platforms to use their market power to favor their own products and services.
Who is it for?
The DMCC is a welcome development for marketers who have been concerned about the growing power of large digital platforms. The bill could help to level the playing field and give marketers more choice and flexibility in how they operate.
In addition, the DMCC is a positive step towards protecting consumers from unfair practices by large digital platforms. The bill could make it easier for consumers to switch between different platforms, and to get redress if they are treated unfairly. For example, the bill could require platforms to give consumers more control over their data, and to make it easier for consumers to cancel subscriptions.
Timings
However, it is important to note that the DMCC is still under consideration by Parliament, and it is not yet clear when it will be enacted. Marketers should continue to monitor the situation and be prepared to adapt their strategies as needed.
You can read the bill yourself on the UK Parliament website.
In our opinion being at the forefront of best-practice and understand regulations is essential to prevent problems, that don't have an opportunity cost to deliver on your objectives.
