Select committee: Business, Innovation, Science and Trade Committee

Recommendation 28

Fourth Report - Post-pandemic economic growth: state aid and post-Brexit competition policy Published 25 Oct 2022 Paragraph 186 Addressed to Department for Business and Trade

Business, Innovation, Science and Trade Committee Post-pandemic economic growth: State Aid and Post Brexit Competition Policy All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗

Recommendation (the committee's words)

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.

From: Business, Innovation, Science and Trade Committee, Fourth Report - Post-pandemic economic growth: state aid and post-Brexit competition policy (HC 759), paragraph 186, 25 October 2022

Government response

Fifth Special Report - State aid and post-Brexit competition policy: Office for the Internal Market response to the Committee’s Fourth Report

The government responded to the whole report on 28 April 2023 (deadline 25 December 2022).

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Third Special Report - Post pandemic economic growth: State aid and post-Brexit competition policy: Responses to the Committee’s Fourth Report of Session 2022–23

Published 10 February 2023.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government welcomes the Committee's report, says it agrees that competition, consumer protection and an effective subsidy regime support growth, and refers the recommendations addressed to the CMA to the CMA for a separate response.

On the Digital Markets, Competition and Consumer Bill, it states the Bill "will be introduced in the current session", and says it will strengthen consumer protection law through the Bill.
It does not commit to updating the Committee within one year on the subsidy regime, saying it is "unlikely that key lessons will be learned within a single year" but it will update the Committee "as appropriate".
The CMA is to review and report on the subsidy regime's effectiveness, with the first monitoring report "due three years after commencement of the regime, in 2026".
On subsidy control guidance, it says BEIS published statutory guidance, a 'quick guide' and a principles assessment template on 11 November, ahead of commencement in January 2023.

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