The UK’s Competition and Markets Authority (CMA) has announced that it will launch two investigations into major tech companies this month, marking the first use of its newly granted powers aimed at boosting competition, investment, and innovation in digital markets.
Under the new framework, the CMA can designate firms as holding “Strategic Market Status” (SMS) for specific digital activities, allowing them to be scrutinized for potential anti-competitive behavior. These powers are aimed at targeting the largest and most influential players in the tech industry. The threshold for SMS status is set high, ensuring that only the most dominant firms in the market will be subject to this level of scrutiny.
Earlier this year, the CMA signaled concerns over the dominance of tech giants such as Apple and Google, with particular attention on Apple’s impact on innovation in smartphone browsers. The CMA also indicated its intention to investigate the duopoly that Apple and Google maintain in mobile ecosystems, leveraging its new powers that came into effect this month.
The regulator has confirmed that it will start investigations in two key areas of digital activity this month, with further details to be provided in the coming weeks. After an initial six-month period, the CMA will begin exploring a third area of concern. Each investigation is expected to conclude within nine months, in line with statutory time limits.
The CMA’s investigations will focus on ensuring that larger tech firms do not stifle competition by prioritizing their own services over smaller competitors. Additionally, the regulator will consider how digital providers can make it easier for consumers to switch services without losing data, and how competition can be enhanced to drive growth across the sector.
Prime Minister Keir Starmer has recently urged the CMA to prioritize economic growth, and the new regime is designed to strike a balance between fostering a competitive market and maximizing the attractiveness of the UK to technology companies. This framework aims to ensure that consumers benefit from increased choice and competitive pricing while supporting the growth of innovative tech firms.
The CMA’s new digital market powers represent a significant shift in how the UK approaches competition policy, with an emphasis on keeping digital markets open and fair for all participants.
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