The Government will form a new Digital Markets Unit within the CMA, and make online platforms subject to a code of conduct.
The CMA will have a Digital Markets Unit: On 27 November 2020, the Government announced a new regulatory framework to regulate online platforms. A Digital Markets Unit will be formed within the Competition and Markets Authority (CMA). The unit builds on the Digital Markets Taskforce launched in March 2020, which includes members of the CMA, the ICO, and Ofcom. The Taskforce will present advice to the Government by the end of 2020.
New rules to limit the power of online platforms: A new code of conduct will require more transparency about the services platforms provide, and how they use consumers’ data. Platforms could also be required to let consumers choose whether to receive personalised advertising, and prevented from creating obstacles for consumers to use rival platforms.
The new unit will begin work in April 2021: The Unit could be given powers to suspend, block and reverse decisions of tech giants, order them to take certain actions to achieve compliance with the code, and impose financial penalties for non-compliance. The government will consult on the form and function of the Digital Markets Unit in early 2021 and legislate soon after.
