Digital Markets Unit Shadow Launch

 

Digital Markets Unit Shadow Launch

 

The new Digital Markets Unit (DMU) has begun work within the CMA, albeit in a ‘shadow. non-statutory form.

Following the Furman Review, the government announced in November 2020 that the DMU would be established to oversee digital platforms with a strategic market position.  The government intends to consult on the design of the regime in the first half of 2021.

Before legislation puts the DMU on a statutory footing, it will work on:

·        carrying out preparatory work to implement the statutory regime;

·        supporting and advising government;

·        evidence-gathering on digital markets;

·        engaging stakeholders across industry, academia, other regulators and government, and internationally.

The CMA, DCMS, BEIS and HM Treasury will agree a work plan.  The ICO, Ofcom and the FCA will join this forum when required.

The launch of the DMU ahead of legislation shows that the CMA wants this body to have credibility even before it gets its full powers.  There is a recognition that these are dynamic markets where ‘just in time’ intervention may be warranted.  It is unclear clear what role the DMU will have in mergers.

https://www.gov.uk/government/news/new-watchdog-to-boost-online-competition-launches--3