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Digital Markets Unit and the Digital Markets Competition Regime 

The Competition and Markets Authority (CMA) promotes competition and innovation within digital markets. 

The CMA oversees the digital markets competition regime (DMCR) for the most powerful digital firms, promoting greater competition and innovation in these markets and protecting consumers and businesses from unfair practices. 

The Digital Markets, Competition and Consumers (DMCC) Act, which came into effect in 2025, granted the CMA with powers to enforce the DMCR.  

The regime applies only to those firms who are designated as having strategic market status (SMS) in relation to a digital activity linked to the UK. To be designated, a firm must have substantial and entrenched market power and a position of strategic significance in that digital activity , as well as having a global turnover exceeding £25 billion, or a UK turnover exceeding £1 billion. 

Designations are reviewed a minimum of every 5 years. 

The regime has 3 pillars: 

  • conduct requirements that set out how firms with SMS are expected to behave in relation to the relevant activity
  • pro-competition interventions to address adverse effects on competition
  • merger reporting requirements, so that SMS firms will have to report mergers with a value of at least £25m, and UK connection, to the CMA

Current consultations

How the digital markets competition regime works

Will Hayter, Executive Director for Digital Markets at the CMA, explains how the CMA will deliver the regime.

SMS investigations and requirements

Under the regime, some firms can be designated with strategic market status (SMS). Will Hayter, Executive Director for Digital Markets at the CMA, explains what this means and how SMS investigations work.

Our work in digital markets

The CMA is committed to ensuring that competition works well in digital markets. Some of our investigations started before the DMCC Act.

Memorandums of understanding

The memorandums of understanding between the CMA and other organisations set out how we will work together to avoid duplication of effort and share best practice.

Updates to this page

Published 7 April 2021
Last updated 19 December 2024 show all updates
  1. Updated with information about the digital markets competition regime.

  2. Updated with information about the Digital Markets, Competition and Consumers Act 2024.

  3. Government has now published its consultation on proposals for the new pro-competition regime.

  4. First published.