RBB response to the CMA’s draft guidance for the digital markets competition regime

In May 2024, the UK Competition and Markets Authority (CMA) published its draft guidance for the digital markets competition regime, as established by the Digital Markets, Competition and Consumers Act (the Act). 

In response to the public consultation, RBB submitted a reply setting out a number of observations.  We acknowledge that the Act has the potential to deliver meaningful benefits to competition in the digital space.  Moreover, the CMA’s commitment to adopting an evidence-based approach is welcome. 

However, implementation is not without risk.  It has the potential to impose a significant regulatory burden on firms and to chill competition and innovation, to the detriment of consumers.  The draft guidance exacerbates these risks by creating considerable uncertainty as to which firms and activities will be captured by regulation and failing to acknowledge that there is a well-recognised process for assessing substantial market power that can (and should) apply in respect of digital markets.  We urge the CMA to provide more clarity, in line with established economic principles, to resolve these issues.