The Digital Markets, Competition and Consumers Act has officially become law in the UK after receiving Royal Assent. This Act aims to empower consumers by providing greater control and transparency over online purchases.
Businesses will now be required to offer clear information to consumers before entering into a subscription contract, remind consumers when their free or low-cost trial is ending, and make it easy for consumers to cancel a contract. Hidden fees must be included in the initial cost or clearly displayed at the beginning of the purchasing process to ensure consumers are fully aware of what they are spending.
The Act also grants new tools to the Competition and Markets Authority (CMA) to address competition challenges in digital markets. The CMA can set tailored ‘conduct requirements’ for powerful tech companies to change their operations if they are not treating users fairly. This could give consumers more freedom to choose services or prevent companies from withholding crucial information for decision-making.
Additionally, the CMA now has the authority to intervene and direct companies to boost competition in areas like smartphone usage and cloud services. The Act also allows the CMA to monitor road fuel prices closely and report any signs of malpractice to the government.
Only a select few of the largest global technology firms will be subject to these new rules if they are found to hold ‘strategic market status’ following an investigation. Non-compliance with CMA decisions could result in hefty fines reaching into the billions of pounds, along with other measures to ensure accountability and fairness.