Recommendation 25

HM Government · verbatim extract Acknowledged

a small number of firms and to unleash a new wave of growth, innovation and competition across international digital markets. Many jurisdictions across the world, including the UK and the EU, are rapidly developing new policies and regulation to address competition concerns in digital markets. The UK and EU approaches to digital competition both seek to tackle many of the same issues in enabling competition, with many similarities in terms of remedies and enforcement. However, as we are making the most of post-Brexit opportunities to improve regulation, there are also key differences between our approaches. By contrast to the EU’s, our regime will be more targeted and evidence-based. It will focus on a small number of firms which will be designated with Strategic Market Status. Rather than imposing a blanket list of rules on these firms, the Digital Markets Unit (DMU) will tailor any interventions on the basis of evidence. Our regime will be firmly pro-growth with mechanisms in place to safeguard consumer benefits and protect innovation. Stakeholders have welcomed the UK’s new regime as flexible, targeted and proportionate. The Government believes it is important that regulatory approaches globally are complementary and support the growth of digital companies and technologies. The international nature of the internet and the global footprint of many of the firms who are likely to fall in scope of regulation highlight the importance of international collaboration and information sharing on policy developments. Throughout the development of the new regime, we have proactively engaged with our international partners including the EU through multilateral fora (including the UK’s G7 presidency in 2021) and bilaterally.