The UK's Digital Markets, Competition and Consumers Act 2024 webinar: key highlights

In our recent webinar on Tuesday, 3 December, we explored the UK’s new Digital Markets, Competition and Consumer Act (the “Act”).

We are pleased to share some key highlights from the session and provide you with access to the video or audio recording.

Video recording

Audio recording

This comprehensive session covered the significant changes introduced by the Act, including the enhanced powers granted to the Competition and Markets Authority (the “CMA”) in both UK competition law and consumer protection law.

Key highlights from our webinar

The Context and Motivation Behind the Changes to the Law

During a recent webinar hosted by Matthew Gough, Julia Woodward-Carlton provided insights into the context and motivation behind the Act’s reforms. She explained that the Act signifies a major overhaul of both competition and consumer protection laws in the UK. It introduces a new regime aimed at boosting competition in digital markets, spearheaded by the newly established Digital Markets Unit within the CMA. The reforms are motivated by the need to strengthen consumer rights, enhance existing competition law powers, and modernize the UK merger control regime.

The New Digital Markets Regime

Lizzy Coleman outlined key changes in the new digital markets regime. Under this regime, the CMA will have the authority to investigate whether any digital firms possess substantial and entrenched market power in a digital activity linked to the UK. If a firm is found to have such power, the CMA can designate it as having “Strategic Market Status” and impose specific conduct requirements. Firms with this status will also need to report all M&A deals over a certain threshold to the CMA, with significant penalties for non-compliance.

Significant Changes to Consumer Law

Eve England discussed the substantial changes to the consumer protection regime. The Act will update and strengthen the enforcement of consumer law by providing a wider range of corrective measures to the courts and the CMA. This includes new rules for subscription arrangements and a refresh of the existing unfair commercial practices framework.

The CMA’s New Consumer Protection Powers

Jo Hooper elaborated on the CMA’s new consumer enforcement powers. For the first time, the CMA will be able to take direct action against businesses for breaches of consumer law, including imposing fines of up to 10% of annual global turnover. Jo explained the process the CMA will follow in investigations under this new enforcement model, including the issuance of provisional and final infringement notices. Peter Harper noted that the CMA is actively preparing to use these new powers and will leverage its knowledge of competition law enforcement, using its powers holistically.

The CMA’s New Investigatory Powers Under Competition Law

Julia highlighted the main changes to the CMA’s competition investigatory powers, which will be used alongside its new consumer powers. The Act expands the CMA’s ability to investigate anti-competitive conduct outside the UK that affects the UK market. It grants the CMA the power to compel businesses located outside the UK to produce documents and information, conduct mandatory interviews, and collect documents and data at domestic premises. Lizzy mentioned the CMA’s increased powers regarding the preservation of documents.

Forthcoming Changes to Subscription Contracts

Eve provided more details about the changes to consumer law affecting subscription contracts, expected to take effect in 2026. These changes include new mandatory wording for consumers, new renewal notices, a renewal cooling-off period, and the ability to exit the contract. The Government’s guidance on this part of the Act will reflect the broader range of products consumers buy and offer more flexibility than existing consumer laws.

Competition Law Changes to Mergers, Market Reviews, and the New Duty of Expedition

Peter discussed three additional changes to competition law under the Act. These include wider powers for the CMA to investigate activities by smaller companies and a mandatory global reporting requirement for large platform businesses. He also mentioned the expansion of the CMA’s market review powers, which can lead to both consumer and competition law activities, and the new duty on the CMA to act expeditiously, which may have a significant practical impact on businesses in the UK.

What Might Businesses Do Now?

Eve pointed out that, unlike the competition changes, there is more time before some of the consumer law changes, such as those affecting subscription contracts, take effect. However, it is crucial for businesses to understand that the Act will bring greater scrutiny of consumer practices, making compliance more important than ever. All consumer-facing businesses should consider reviewing their terms and customer journey for compliance with existing consumer law requirements.

Lizzy concluded with some key issues for businesses to be aware of, including a trend towards the CMA exercising its powers more frequently under the Act. She noted the holistic approach of the CMA, using its powers across both competition and consumer law to address concerns, and the increased risk of litigation for companies due to the CMA’s enhanced powers and the growing trend of collective actions in the UK.

For a detailed discussion on the key developments and issues mentioned above and their potential impact on your organisation, please contact us at DMCC@eversheds-sutherland.com.