The unregulated regulator

Think tank: Centre for Policy Studies

Author(s): Matthew Sinclair

June 29, 2023

This report from UK think tank the Centre for Policy Studies argues that the Digital Markets, Competition and Consumer Bill could undermine dynamism in digital markets.

The Digital Markets, Competition and Consumers (DMCC) Bill is a proposed new law which is intended to ‘stamp out unfair practices and promote competition in digital markets’. It would give the Competition and Markets Authority (CMA) extensive powers to intervene in those digital markets, and shape how they operate.

Many of these markets, such as digital advertising and social media, have shown the potential for dynamic competition in recent years. The largest players have been losing market share to new kinds of challengers, with the combined market share of the top two in digital advertising (Google and Facebook) falling relative to Amazon and TikTok, for example.

New services have brought valuable benefits to UK consumers and businesses, with video calling becoming commonplace and generative AI built into an increasingly broad range of digital services.