Source · Select Committees · Culture, Media and Sport Committee
Recommendation 19
19
Paragraph: 159
The market for streaming services itself is fiercely competitive.
Recommendation
The market for streaming services itself is fiercely competitive. However, there is the potential that companies may leverage other aspects of their business or elsewise use vertical integrations to gain a competitive advantage; indeed, some jurisdictions have considered that this is already happening in some areas. It is important that the UK has a regulatory regime to respond to these challenges. We are encouraged that the CMA has already launched its Digital Markets Unit, which is undertaking important work in this area within the scope of the CMA’s current powers, but to ensure proper compliance the DMU needs to be put on a statutory basis as soon as possible. The Government should launch its consultation on the new pro-competition regime for digital markets by the time it has responded to this Report and commit to a reasonable timeframe (to which it can be held accountable) for when it reasonably expects legislation to be brought forward thereafter.
Paragraph Reference:
159
Government Response
Not Addressed
HM Government
Not Addressed
The Government launched its consultation on the new pro-competition regime for digital markets in July 2021. The proposals include new rules to ensure consumers and businesses are treated fairly, and measures to drive a more vibrant and innovative economy across the UK. The regime will be overseen by the Digital Markets Unit within the Competition and Markets Authority. It will be empowered to tackle both the consequences and the underlying sources of market power. The Digital Markets Unit will be given robust powers, including tough new fines, to enforce the regime, protect consumers and reduce barriers to entry for entrepreneurs. The consultation will close on 1 October 2021. In April this year, the Digital Markets Unit was launched within the CMA in non- statutory form to prepare for the new regime. The Government will legislate to put the Digital Markets Unit on a statutory footing as soon as Parliamentary time allows.