The taskforce will build on the Digital Competition Expert Panel review to address competition problems in digital markets.
Background: The UK Government has recently launched several initiatives to regulate the digital economy. Off the back of the online harms white paper, the Government is planning to introduce legislation to establish a duty of care for online platforms to limit harmful content, and empower Ofcom to be the new regulator for the online space. In response to the Cairncross Review on the sustainability of journalism in the digital age, the Government also committed to rebalancing the relationship between online platforms and news publishers, and to develop a strategy for media literacy later in 2020. The Digital Competition Expert Panel (DCEP) report highlighted several competition problems in some of the most important digital markets; and the Competition and Markets Authority’s (CMA) ongoing market study into online platforms and digital advertising could lead to remedies against platforms with ‘Strategic Market Status’.
A digital markets taskforce is born: To address these issues in a coherent and cohesive way, the Government is establishing a dedicated digital markets taskforce, which will provide Government with expert advice on the functions, processes and powers which may be needed to deliver on their objectives. The taskforce will build on the DCEP review, and consider the practical application of the potential pro-competitive measures set out by the DCEP. The taskforce will be housed in the CMA and will be headed by a senior CMA official. It will be made up of officials from the CMA, Ofcom, and the data protection authority, the ICO. The taskforce will operate until September 2020, when it will produce a report to Government on how to promote competition in digital platforms markets.
Should tech companies be worried? In a recent statement, the policy body COADEC, which represents UK tech startups, voiced concerns about the CMA’s interventionist approach, which could undermine investment and innovation. The setting up of the taskforce, which gives a prominent role to the CMA, suggests the Government will seriously consider regulatory reform to foster competition, rather than opting for a hands-off approach.
