If you’re a small business taking on tech giants like Google and Apple, a B2C company navigating new consumer rules, or a large organisation exploring mergers and acquisitions, the Digital Markets, Competition and Consumers Act 2024 (DMCC Act) will likely affect you.
This landmark legislation is the biggest shake-up in UK business and consumer regulations in over a decade. It’s designed to level the playing field, protect consumers, and ensure competition thrives across digital and traditional markets.
To help you understand what this Act means for your business, our Competition Law experts, Neil Warwick and Ellen Huison, shared their insights in our latest video podcast. They break down the Act’s biggest changes and provide practical advice on how you can navigate these new rules.
Watch the podcast below or keep reading for a detailed guide on the DMCC Act’s key areas of impact and what you need to do to prepare.
What is the Digital Markets, Competition and Consumers Act 2024 (DMCC Act)?
The Digital Markets, Competition and Consumers Act 2024 (DMCC Act) is a landmark piece of legislation aimed at creating fairer, more transparent markets and enhancing consumer protection in the UK.
The act focuses on three key areas:
- Digital Markets: Keeping Big Tech in check by targeting unfair practices and opening doors for smaller businesses to compete.
- Consumer Protection: Ensuring customers are treated fairly, with tougher rules on advertising, subscriptions, and refunds.
- Competition Rules: Tightening regulations on mergers and acquisitions to prevent large companies from unfairly swallowing up smaller competitors.
In short, the DMCC Act is a comprehensive effort to modernise UK business regulation, ensuring markets are fair, competition thrives, and consumers are better protected. Whether you’re a small business, a large corporation, or a digital platform, this Act is likely to affect how you operate.
What you need to know
Digital markets
The Act introduces new rules for large digital firms with Strategic Market Status (SMS). The CMA will issue rulebooks for these companies, requiring fairer practices and greater transparency to create a level playing field for smaller businesses.
What this means:
If you compete with Big Tech, these rulebooks could open up opportunities to innovate and grow without being overshadowed by industry giants. However, if your business is designated as SMS in the future, you'll face stricter obligations, including clear transparency and fair dealing requirements.
Consumer protection
Starting in April 2025, the Act will impose stricter rules on consumer-facing businesses, tackling issues like misleading discounts, unclear subscription terms, and greenwashing. The CMA can now directly enforce compliance, with fines of up to 10% of global annual turnover for breaches.
Fake discounts
Businesses must substantiate discount claims (e.g., "50% off") with evidence that the product was sold at the original price for a reasonable period—typically at least 28 days in the past six months.
Drip pricing
Drip pricing refers to the practice of initially advertising a low price for a product or service, only to add mandatory fees or charges as the customer progresses through the purchasing process.
The DMCC Act seeks to combat practice like this by requiring businesses to display full and transparent pricing upfront.
Subscription terms
Businesses must make sure customers can cancel subscriptions easily, without hidden barriers or lengthy processes.
As such, subscriptions must include clear and transparent terms, especially regarding pricing structures, cancellation rights and processes, and renewal terms (including whether they auto-renew).
Practices like default opt-ins for subscriptions without explicit consent will likely breach these rules.
Misleading advertising
The Act bans deceptive advertising practices, including:
- False claims about product performance, benefits, or features.
- Unsubstantiated claims, such as "eco-friendly" or "green" (greenwashing).
- Creating false urgency, like fake countdown timers or "limited stock" messages when not true.
Fake reviews
The Act bans the submission or commissioning of fake reviews, as well as concealing the fact that a review has been incentivised.
What this means for you:
If you operate a B2C business, you must ensure all pricing, advertising, and subscription practices are transparent and fair. You should also review all your terms for auto-renewals, cancellation processes, and promotions to avoid penalties.
Competition rules
The Act lowers thresholds for merger reviews, meaning more deals will come under CMA scrutiny. It also focuses on so-called "killer acquisitions," where larger firms acquire smaller competitors to suppress future competition, particularly in emerging markets like AI and tech.
The CMA can now investigate mergers where:
- The acquiring entity holds 33% of any market share.
- The combined UK turnover exceeds £10 million.
What this means for you:
Before finalising any merger or acquisition, it’s essential to assess whether the deal meets the CMA’s thresholds for review. Pay close attention to narrowly defined markets where your business could be seen as holding a dominant position.
Engaging with advisors early can help you anticipate and address potential competition concerns. By proactively identifying and mitigating risks, you can avoid delays, costly investigations, or unforeseen regulatory challenges.
It’s also worth noting that failing to notify the CMA doesn’t mean your deal is off their radar. If flagged later, it could still face scrutiny, potentially leading to costly outcomes like divestments or fire sales. Conducting thorough due diligence now can save you significant trouble—and expense—down the line.
How will the law be enforced?
The DMCC Act marks a shift towards proactive enforcement. Instead of waiting for harm to occur, the CMA now has the tools to act pre-emptively. With the ability to impose fines of up to £300,000 or 10% of global annual turnover for breaches, the message is clear: non-compliance will not be tolerated.
However, enforcement isn’t without its challenges. The CMA’s resources are limited compared to the scale of large tech firms and consumer sectors, but history suggests that new powers often lead to high-profile early cases. The CMA has already begun investigating Google and Apple’s mobile ecosystems, setting the tone for further action.
Ex ante regulation and faster processes
For businesses with Strategic Market Status, the CMA will issue rulebooks to set clear expectations for acceptable behaviour. These are designed to prevent harm before it happens.
For consumer protection cases, the CMA can now act directly without involving the courts. Investigations into SMS firms will also be streamlined, aiming for completion within nine months. This faster, more efficient process benefits both consumers and businesses by reducing prolonged uncertainty.
Stronger fining powers
One of the biggest changes under the DMCC Act is the CMA’s new power to impose significant fines directly. For breaches of consumer law, fines can reach up to 10% of global annual turnover, making it clear that non-compliance is no longer an option. This is a major shift from the old system, where enforcement often relied on lengthy court processes and penalties were minimal.
Practices like exaggerated “50% off” discounts or greenwashing claims are now under strict scrutiny. The CMA will expect clear, auditable evidence to back up such claims, and vague or misleading practices won’t cut it anymore. Businesses relying on outdated tactics may find themselves among the first targets for enforcement—and the consequences will be anything but a slap on the wrist.
Focus areas for enforcement
Early enforcement efforts are expected to target high-profile consumer issues, including:
- Unsubstantiated claims about environmental benefits.
- Misleading tactics like fake countdown timers.
- Complex or hidden cancellation processes for subscriptions.
These areas not only affect consumers but also attract public and media interest, enabling the CMA to demonstrate the Act’s impact. Businesses operating in these sectors should anticipate closer scrutiny.
A collaborative yet firm approach
The CMA is encouraging businesses, competitors, and public interest groups to submit evidence of unfair practices. While this collaborative model helps identify issues early, it’s not a sign of leniency. Unlike the Advertising Standards Authority (ASA), the CMA’s powers are backed by the authority to impose serious penalties.
How should you prepare?
The DMCC Act introduces substantial changes, but businesses have time to adapt. Acting now will help you avoid penalties and position your organisation as a leader in compliance.
- Review your website, advertising, and subscription practices for potential breaches.
- Ensure transparent pricing, clear cancellation terms, and compliance with new consumer rules.
- If your business is involved in mergers or acquisitions, assess whether your transactions meet the CMA’s lower thresholds for scrutiny.
- Perform a compliance audit to address potential risks before enforcement begins.
- Train your teams on the importance of fair and transparent practices across marketing, sales, and customer service.
Why acting now matters
The DMCC Act is rolling out in phases starting this year. While this gives businesses some time to prepare, acting early is key.
Getting ahead of these changes isn’t just about avoiding penalties—it’s an opportunity to position your business as a leader in fairness, transparency, and compliance. Early preparation can help you confidently navigate new rules while building trust with customers and regulators alike.
Our team is here to support you with:
- Compliance Checks and Training to ensure your practices align with the Act’s requirements.
- Strategic Advice on engaging with the CMA, particularly for businesses navigating SMS rulebooks or mergers.
- Defence and Support for CMA investigations and dawn raid preparation.
- Contractual Reviews to ensure subscription terms, pricing, and policies meet the new standards.
Get in touch with our Competition Law Team today and start preparing for the changes ahead.