Reed Smith In-depth

Key takeaways

  • The Digital Markets, Competition and Consumers Act 2024 extends the CMA’s jurisdiction to anti-competitive agreements that affect the UK, regardless of where they may be implemented.
  • The Act introduces new merger control thresholds, including a safe harbour for the share of supply test and a threshold aimed at ‘killer acquisitions’.
  • The Act increases the scope of enforcement powers for the CMA in relation to merger control.

Authors: Marjorie C. Holmes Emma Weeden Vaibhav Adlakha Pratheeba Vachiraveel

Alongside updates to the UK competition regime, the UK Digital Markets, Competition and Consumers Act 2024 (the Act) also regulates Big Tech through the introduction of a digital markets regime1 and gives the Competition and Markets Authority (CMA) enhanced consumer protection powers. The Act’s provisions on digital markets and competition law came into force on 1 January 2025, with the enhanced consumer protection regime coming into force in spring 2025.

Amendments to the UK competition regime

The Act amends specific provisions of the Competition Act 1998 and Enterprise Act 2002, with an updated competition regime effective from 1 January 2025.

1. Anti-competitive behaviours

One key change made by the Act is widening the scope of anti-competitive agreements and practices that may be caught under the regime. Any agreement with potential anti-competitive effects within the UK, regardless of where it is carried out, will now fall under the CMA’s jurisdiction. This will apply to agreements made after 1 January 2025.