Source · Select Committees · Business and Trade Committee
Recommendation 28
28
Acknowledged
Paragraph: 186
There are clear examples of market dominance in digital markets globally which have been well...
Recommendation
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.
Government Response 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.
Paragraph Reference:
186
Government Response
Acknowledged
HM Government
Acknowledged
The Government agrees with the Select Committee that the Digital Regulation Cooperation Forum (DRCF) plays an important role in supporting a joined-up approach to digital regulation and facilitating coordination and knowledge exchange between our key digital regulators. The work of the Forum demonstrates the rapid progress that can be made through non-statutory forms of coordination. For example, the Joint Statements on competition and data protection law1 and on online safety and competition2 that regulators have issued through the DRCF have shown the degree of join-up that is possible without introducing further legislative measures. As set out in our responses to the House of Lords Communications and Digital Committee3 and the Joint Committee on the Online Safety Bill4, the Government also recognises the strong interest which the activities of the DRCF are generating with stakeholders across the landscape and the ensuing importance of clarity and transparency in the way the DRCF operates. The former Secretary of State for Digital, Culture, Media and Sport highlighted this as a priority issue for consideration in her statement of priorities for the digital regulation landscape to the CEOs of the DRCF earlier this year5. We welcome the steps which the DRCF has taken in its programme of work for 2022 to 20236.This includes the publication of their Terms of Reference for the Forum clarifying how its members work together7.The DRCF has also strengthened and broadened their programme of external engagement with SMEs, start-ups and academia (including horizon scanning symposiums on topics such as the Metaverse and Web 3.0) to ensure stakeholders understand the priorities of the Forum and have the opportunity to input into their latest thinking. However, we recognise the DRCF may need to go further as its activities expand and it becomes more firmly established. The Government would welcome any further steps the DRCF take to engage Parliament, although as an independent body, it will be for the Forum to decide how it intends to do this. We will continue to work with the DRCF and parliamentarians as the digital regulation landscape evolves, to ensure this is accompanied by the right governance and accountability.