Digital Markets, Competition & Consumers (DMCC) Bill - Second Reading Briefing

Which? welcomes the introduction of this Bill to modernise and update the UK's competition and consumer laws, and this briefing sets out the key provisions relevant to our work. The Bill supports greater competition, and consumer choice and protection by addressing fundamental short and long-term challenges in the United Kingdom.

The cost of living crisis has heightened the need to address the rip-offs, scams and rogue traders that cause consumers misery. It is estimated that up to a third of people experience at least one problem with a product or service every year and consumers suffer harm worth £54bn a year. This Bill will tackle these problems by giving the Competition and Markets Authority more effective powers to facilitate competition in the economy, while enabling a clamp down on rip-off merchants posting fake online reviews and stopping consumers from being trapped in costly subscription contracts.

Longer-term, the Bill will benefit consumers by increasing competition and, ultimately, economic growth. The CMA has shown that the UK economy is less competitive now than it used to be. The largest firms are finding it easier to maintain their position and markups are higher. This is particularly problematic at times of high inflation as it makes it easier for firms to pass on price rises to consumers and this lack of competition stifles innovation.

This Bill is vital for supporting both businesses and consumers; facilitating the right market conditions to improve business practice, encourage innovation, protect consumers from modern harms, and grow the economy.