Recommendations & Conclusions
12 items
3
Conclusion
Fourth Report - Post-pandemic economic …
Acknowledged
The CMA is generally well regarded domestically. However, awareness of its work appears to be low in the UK, both amongst the public and amongst businesses. We agree that awareness of the CMA’s work and the value which it adds is necessary if it is to have credibility. We encourage …
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The CMA is generally well regarded domestically. However, awareness of its work appears to be low in the UK, both amongst the public and amongst businesses. We agree that awareness of the CMA’s work and the value which it adds is necessary if it is to have credibility. We encourage the CMA to be more proactive in explaining to the public how its work has delivered for consumers, both in its annual reporting and its press notices.
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Government response AI summary
The CMA agrees it is important to communicate effectively and is using press notices and news stories, the 2023/24 draft Annual Plan, and the consultation process to identify and engage with a wider range of stakeholders.
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Department for Business and Trade
4
Conclusion
Fourth Report - Post-pandemic economic …
Acknowledged
The increase in the CMA’s responsibilities and powers is likely to lead to a corresponding increase in its public profile, as businesses and public authorities start to engage with it, or engage more frequently. We believe that would be beneficial and should be embraced by the CMA. We will play …
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The increase in the CMA’s responsibilities and powers is likely to lead to a corresponding increase in its public profile, as businesses and public authorities start to engage with it, or engage more frequently. We believe that would be beneficial and should be embraced by the CMA. We will play a part in increasing accountability of the CMA through enhanced, more regular scrutiny, challenging it when we think necessary.
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Government response AI summary
The CMA welcomes greater interest and scrutiny from parliamentary committees and is ready to engage and provide greater reporting.
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Department for Business and Trade
14
Recommendation
Fourth Report - Post-pandemic economic …
Acknowledged
We therefore request that the Government gives an early indication of the extent to which it expects to use its power under Clause 17 of the Retained EU Law (Revocation and Reform) Bill as introduced, and of the likely volume and rate of flow of draft legislative reform orders, so …
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We therefore request that the Government gives an early indication of the extent to which it expects to use its power under Clause 17 of the Retained EU Law (Revocation and Reform) Bill as introduced, and of the likely volume and rate of flow of draft legislative reform orders, so that the Committee can assess whether its working practices will need to change substantially. At the very least, the Committee would need early warning from the Government of each impending draft legislative reform order, in order to ensure effective and prompt scrutiny.
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Government response AI summary
The government discusses the Digital Markets, Competition and Consumers Bill and its benefits, but does not provide an early indication of the extent to which it expects to use its power under Clause 17 of the Retained EU Law (Revocation and Reform) Bill, or the …
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Department for Business and Trade
19
Conclusion
Fourth Report - Post-pandemic economic …
Acknowledged
We believe that lower thresholds and higher penalties are necessary so that bigger businesses which break the rules do not see financial penalties as a small business cost.
Government response AI summary
The government states its commitment to taking forward changes related to lower thresholds and higher penalties, and mentions that the Bill will be introduced in this Parliamentary session.
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Department for Business and Trade
20
Recommendation
Fourth Report - Post-pandemic economic …
Acknowledged
We are concerned that the Draft Digital Markets, Competition and Consumer Bill is yet to be published, not least because a period of pre-legislative scrutiny is envisaged, and we therefore call on Ministers to publish the draft bill as soon as possible.
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We are concerned that the Draft Digital Markets, Competition and Consumer Bill is yet to be published, not least because a period of pre-legislative scrutiny is envisaged, and we therefore call on Ministers to publish the draft bill as soon as possible.
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Government response AI summary
The Government is committed to introducing the Digital Markets, Competition and Consumer Bill in this Parliamentary session.
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Department for Business and Trade
21
Recommendation
Fourth Report - Post-pandemic economic …
Acknowledged
We support the idea that there should be more accessible support for consumers across the UK. We encourage the development of ombudsman services, including in sectors not currently covered by an ombudsman, as an independent and trusted arbiter that consumers understand and can engage with.
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We support the idea that there should be more accessible support for consumers across the UK. We encourage the development of ombudsman services, including in sectors not currently covered by an ombudsman, as an independent and trusted arbiter that consumers understand and can engage with.
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Government response AI summary
The Government states that it is committed to taking forward changes, and that the Bill will be introduced in this Parliamentary session, regarding accessible support for consumers.
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Department for Business and Trade
23
Conclusion
Fourth Report - Post-pandemic economic …
Acknowledged
We believe that UK consumers are experiencing significant consumer detriment as a result of the behaviour of a number of airlines. We agree with the Transport Committee that the CAA’s current powers are not adequate to protect consumers’ rights in the airline sector. (Paragraph 156) Post-pandemic economic growth: state aid …
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We believe that UK consumers are experiencing significant consumer detriment as a result of the behaviour of a number of airlines. We agree with the Transport Committee that the CAA’s current powers are not adequate to protect consumers’ rights in the airline sector. (Paragraph 156) Post-pandemic economic growth: state aid and post-Brexit competition policy 51
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Government response AI summary
The Government agrees that a well-functioning ADR system supports consumers and businesses, and is planning to improve the consistency and quality of ADR services by legislating to mandate accreditation of ADR providers and strengthening the monitoring framework.
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Department for Business and Trade
24
Recommendation
Fourth Report - Post-pandemic economic …
Acknowledged
We support the Transport Committee’s recommendations in its UK aviation: reform for take-off Report of the 2021–22 Session, on the need for the Civil Aviation Authority to have the power to impose financial penalties on airlines which fail to refund customers when required to do so by law. We recommend …
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We support the Transport Committee’s recommendations in its UK aviation: reform for take-off Report of the 2021–22 Session, on the need for the Civil Aviation Authority to have the power to impose financial penalties on airlines which fail to refund customers when required to do so by law. We recommend that the BEIS Department considers the enforcement powers of sectoral regulators more widely, as part of our recommendations in this report on its future work with the CMA, as the primary enforcer of consumer law in the UK. (Paragraph 157) Digital Markets
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Government response AI summary
The Government has committed to reform the CMA's powers as a priority in the Digital Markets Competition and Consumer Bill. Government will keep the case for extending similar direct enforcement powers to sectoral regulators under review.
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Department for Business and Trade
25
Conclusion
Fourth Report - Post-pandemic economic …
Acknowledged
We acknowledge that the UK approach to digital markets regulation will be different to that of the EU. However, we welcome EU efforts to increase competition and ensure a level playing field for all digital companies. We support updates to EU law that include designating gatekeepers, setting rules for firms, …
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We acknowledge that the UK approach to digital markets regulation will be different to that of the EU. However, we welcome EU efforts to increase competition and ensure a level playing field for all digital companies. We support updates to EU law that include designating gatekeepers, setting rules for firms, and sanctioning those companies which abuse their dominant position.
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Government response AI summary
The government has committed to reform the CMA’s powers as a priority in the Digital Markets Competition and Consumer Bill. Government will keep the case for extending similar direct enforcement powers to sectoral regulators under review.
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Department for Business and Trade
26
Conclusion
Fourth Report - Post-pandemic economic …
Acknowledged
We agree with the recommendations of the Joint Committee on the Online Safety Bill and the House of Lords Communications and Digital Committee, that the Digital Regulation Co-operation Forum (DRCF) should have a more formal status and clearer lines of accountability, given the increasingly important role it plays in decision …
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We agree with the recommendations of the Joint Committee on the Online Safety Bill and the House of Lords Communications and Digital Committee, that the Digital Regulation Co-operation Forum (DRCF) should have a more formal status and clearer lines of accountability, given the increasingly important role it plays in decision making between regulators. However, as the DRCF does not require formal powers, and funding is allocated by the member regulators, we do not believe that a statutory underpinning is required.
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Government response AI summary
The government states that the UK and EU approaches to digital competition both seek to tackle many of the same issues, but the UK regime will be more targeted and evidence-based. The government believes it is important that regulatory approaches globally are complementary and support …
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Department for Business and Trade
27
Recommendation
Fourth Report - Post-pandemic economic …
Acknowledged
However, we do believe that the Digital Regulation Co-operation Forum’s accountability arrangements need to be updated. Until such time as these arrangements are formally agreed, the DRCF should proactively report to this Committee about the delivery of its objectives and any key decisions that it takes.
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However, we do believe that the Digital Regulation Co-operation Forum’s accountability arrangements need to be updated. Until such time as these arrangements are formally agreed, the DRCF should proactively report to this Committee about the delivery of its objectives and any key decisions that it takes.
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Government response AI summary
The government acknowledges the importance of the Digital Regulation Cooperation Forum (DRCF) and its role in digital regulation, welcomes steps taken to strengthen external engagement, but stops short of mandating that the DRCF proactively report to the Committee about the delivery of its objectives and …
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Department for Business and Trade
28
Recommendation
Fourth Report - Post-pandemic economic …
Acknowledged
There are clear examples of market dominance in digital markets globally which have been well documented. We heard from witnesses, and during our visit to the US, strong evidence of abuses of market dominance which warrant intervention. We encourage the CMA to investigate these instances closely and collaborate internationally to …
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There are clear examples of market dominance in digital markets globally which have been well documented. We heard from witnesses, and during our visit to the US, strong evidence of abuses of market dominance which warrant intervention. We encourage the CMA to investigate these instances closely and collaborate internationally to promote further competition between digital firms. We also call on the CMA to continue with its market studies and for the Government to continue to ensure that the CMA is funded to carry out this work.
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Government response AI summary
The government acknowledges the role of the Digital Regulation Cooperation Forum (DRCF) and welcomes their work, including publications and engagement with stakeholders. They will continue to work with the DRCF and parliamentarians.
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Department for Business and Trade