A major role for the Digital Markets Unit
The Digital Markets Unit (DMU) was established in April 2021. It sits within the CMA. The government is proposing to place the work of the DMU on a statutory footing and its consultation considers the powers the body should have when carrying out its functions.
The government considers that the DMU’s statutory duty “should be as lean and as simple as possible”, focusing on the promotion of competition, including competitive outcomes, in digital markets for the benefit of consumers. It has rejected a proposal from the digital markets taskforce to place a broader statutory duty “to further the interests of consumers and citizens in digital markets, by promoting competition and innovation”, on the DMU.
The United Kingdom (UK) Government's announcement (Nov 2020) of its intention to establish a dedicated Digital Markets Unit (DMU) to protect competition in respect of digital platforms is a significant step, albeit one of a number of measures being taken by the Government to regulate the digital sector.
The DMU will be housed within the Competition and Markets Authority (CMA) and will work alongside regulators including the Office of Communications (Ofcom) and the Information Commissioner's Office (ICO) to produce and enforce a new statutory code of conduct – which will govern the behavior of companies designated as having 'Strategic Market Status' (SMS).
The new regime implements the recommendations of a market study focused on online platforms and digital advertising which was published by the CMA at the request of the Government earlier this year. That report concluded that the UK needed "a new, regulatory approach – one that can tackle a range of concerns simultaneously, with powers to act swiftly to address both the sources of market power and its effects, and with a dedicated regulator that can monitor and adjust its interventions in the light of evidence and changing market conditions."
The Digital Markets Act (DMA) is a legislative proposal of the European Commission that intends to ensure a higher degree of competition in the European Digital Markets, by preventing large companies from abusing their market power and by allowing new players to enter the market.[2] It establishes a list of obligations for designated Gatekeepers and in case of non-compliance, there will be enforced sanctions mechanisms, including fines of up to 10% of the worldwide turnover.
More about : [Sources : https://ec.europa.eu/info/strategy/priorities-2019-2024/europe-fit-digital-age/digital-markets-act-ensuring-fair-and-open-digital-markets_en ]