The Digital Markets, Competition and Consumers Act has received Royal Assent and become law.
Under this law,
* Giving the UK competition regulator the tools to stop strategically powerful technology companies from abusing their position to the detriment of competitors and consumers;
* Establishing penalties for businesses that breach consumer protection laws and allowing the Competition and Markets Authority (CMA) to directly enforce consumer laws;
* Giving consumers more control over their subscriptions by providing transparent pricing, preventing fake reviews and giving them more control over what they buy online
The Act will provide rights to consumers across the UK, paving the way for greater control and clarity over online purchases.
The law will require businesses to give consumers clearer information before they enter into a subscription contract, to let consumers know when free or low-cost trials are ending, and to make it easier for consumers to end contracts.
Additionally, any unavoidable hidden fees must be factored into the upfront cost or clearly stated at the beginning of the purchase process, so consumers know exactly what they are paying for right from the start.
The Digital Markets, Competition and Consumer Act also gives the Competition and Markets Authority (CMA) new tools to address competition challenges in digital markets.
These tools would allow competition regulators to set individual "conduct requirements" to force powerful tech companies to change the way they operate if they aren't treating users fairly. These rules would give consumers the freedom to choose the services they use, and stop companies from hiding information they need to make good decisions.
The law also gives regulators the power to intervene and tell companies to change their behavior to promote competition, which would benefit people who use smartphones and businesses that rely on cloud services.
The Act also gives the CMA new powers to closely monitor road fuel prices and report any signs of fraud to the Government.
The new rules will only apply to companies that, after review, are deemed to have a "strategic market position" - likely to be only a handful of the most powerful technology companies globally.
If companies do not comply with the CMA's decisions, they could be subject to fines running into tens of billions of pounds. These fines and other measures are balanced by strict checks and balances.
For more details » Digital Markets, Competition and Consumers Act receives Royal Assent