Source · Select Committees · Business and Trade Committee
Fourth Report - Post-pandemic economic growth: state aid and post-Brexit competition policy
Business and Trade Committee
HC 759
Published 25 October 2022
Recommendations
14
Acknowledged
Para 111
We therefore request that the Government gives an early indication of the extent to which...
Recommendation
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 …
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Government Response 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 likely volume and rate of flow of draft legislative reform orders.
Department for Business and Trade
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20
Acknowledged
Para 141
We are concerned that the Draft Digital Markets, Competition and Consumer Bill is yet to...
Recommendation
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 …
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Government Response Summary
The Government is committed to introducing the Digital Markets, Competition and Consumer Bill in this Parliamentary session.
Department for Business and Trade
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21
Acknowledged
Para 147
We support the idea that there should be more accessible support for consumers across the...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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24
Acknowledged
We support the Transport Committee’s recommendations in its UK aviation: reform for take-off Report of...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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27
Acknowledged
Para 180
However, we do believe that the Digital Regulation Co-operation Forum’s accountability arrangements need to be...
Recommendation
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 …
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Government Response 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 any key decisions.
Department for Business and Trade
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28
Acknowledged
Para 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 …
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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.
Department for Business and Trade
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Conclusions (6)
3
Conclusion
Acknowledged
Para 39
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 …
Government Response 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.
4
Conclusion
Acknowledged
Para 40
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 …
Government Response Summary
The CMA welcomes greater interest and scrutiny from parliamentary committees and is ready to engage and provide greater reporting.
19
Conclusion
Acknowledged
Para 140
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 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.
23
Conclusion
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 …
Government Response 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.
25
Conclusion
Acknowledged
Para 166
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, …
Government Response 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.
26
Conclusion
Acknowledged
Para 179
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 …
Government Response 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 the growth of digital companies and technologies.