Call for Evidence

The House of Lords Communications and Digital Committee is seeking views on the Digital Markets, Competition and Consumers Bill.

The Committee invites written contributions by 12 June 2023.

Background

Digital markets are defined by the Government as “markets where businesses develop and apply new technologies for the benefit of other businesses and consumers, or create brand new products and services using digital capabilities, connecting groups of users in new and innovative ways.”[1]

Examples include mobile apps, search engines, social media platforms, price comparison sites, and digital advertising. Businesses range from the so-called Big Tech firms to UK-based SMEs and start-ups. According to the Government impact assessment, the UK’s digital sector accounted for 1.8 million jobs in 2021, and contributed over £150 billion to the UK economy in 2019.[2]

Digital markets have characteristics that make them more likely to be dominated by a small number of large firms.[3] In April 2023 the Digital Markets, Competition and Consumers Bill was introduced in the House of Commons. The Government said the measures would improve consumer protection, regulate digital markets in a new way, and strengthen competition enforcement powers.

The Communications and Digital Committee is examining the extent to which the legislation will deliver on these objectives. The Committee is focusing in particular on Parts 1 and 2 of the Bill, which deal with digital markets and competition.

Chair’s comment

Baroness Stowell of Beeston, Chair of the Committee, said

“The new Digital Markets, Competition and Consumer Bill will be crucial in providing a fair deal for UK firms and consumers. Getting this legislation right should not be about bashing Big Tech. It is about ensuring digital markets provide a level playing field and the opportunity for innovation to flourish and consumers enjoy the benefits of greater choice. We are keen to hear from a range of perspectives from across the sector to help us scrutinise the Bill in detail.”

Questions

1. To what extent are businesses and consumers affected by limited competition in digital markets, and what are the consequences?
2. Does the Digital Markets, Competition and Consumers Bill strike the right balance between regulating digital markets and encouraging innovation?
3. What are the strengths of the Bill’s measures to regulate digital markets?
4. What are its main weaknesses and how should these be addressed?
5. Are there other existing measures or pieces of legislation that would help address challenges?
6. Is the Competition and Markets Authority sufficiently well prepared to implement the new regime?
7. How does the UK’s approach compare to the EU and US?

[1] https://publications.parliament.uk/pa/bills/cbill/58-03/0294/en/220294en.pdf

[2] https://publications.parliament.uk/pa/bills/cbill/58-03/0294/ImpactAssessmentAnnex1.pdf

[3] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1156567/digital-markets-reforms-impact-assessment-annex-1.pdf