CMA Unveils Strategy for Regulating Big Tech & Promoting UK Growth

Key Takeaways

• Big Tech Regulation Focused on UK Impact: The CMA will focus on how Big Tech affects UK markets, with proactive engagement and transparency.
• Roadmap Guidance: Businesses will receive early clarity on potential Strategic Market Status (SMS) designations through detailed roadmaps.
• Proportionality in Action: The CMA will prioritize high-impact issues that directly affect consumers and businesses, with a focus on achieving a balanced regulatory approach.
• Collaboration with Industry: The CMA is committed to working closely with businesses to ensure the regulatory framework supports growth and innovation.
• Consumer Protection with Clarity: The CMA’s new consumer protection powers will target unfair practices while providing clear guidance to businesses.

Deep Dive

At the TechUK Tech Policy Conference today, Sarah Cardell, Chief Executive of the Competition and Markets Authority (CMA), shared a vision for a more dynamic, responsive, and competitive regulatory landscape in the digital markets. She emphasized the CMA’s role in shaping the future of the UK’s tech ecosystem, signaling a new phase of regulation that will hold Big Tech accountable while encouraging growth and investment.

It’s no secret that Big Tech is under increasing scrutiny worldwide, and the UK is no exception. However, Cardell made it clear that the CMA’s approach will be centered squarely on UK impact, focusing on how global tech giants influence local markets. This isn’t about joining the bandwagon of global regulation for the sake of it—it’s about crafting a regulatory environment that truly serves UK businesses and consumers, without stifling innovation.

“We need to ensure that the UK remains a beacon for tech investment while also protecting consumers from unfair practices,” Cardell said, setting the tone for her speech. Her focus on balancing competition with protection is key. And in an era where the regulatory landscape can feel like an overwhelming maze, Cardell’s strategy aims to make the CMA’s role clearer and more predictable for businesses to navigate.

In her speech, Cardell referenced the launch of the CMA’s Strategic Market Status (SMS) investigations into the search and mobile ecosystems, highlighting that these are the first steps in applying the UK’s new digital markets competition regime. The regime, a product of the Digital Markets, Competition and Consumers Act (DMCCA), will allow the CMA to designate certain companies with "Strategic Market Status," triggering tighter scrutiny. But here’s where it gets interesting, this isn’t a blunt, broad-brush approach. Rather, Cardell stressed that firms would only be targeted if they wield significant market power that directly affects the UK market.

“The UK’s tech sector deserves a regulatory framework that encourages growth while safeguarding competition,” she continued, signaling that the CMA’s approach would not be about regulatory overreach but about proportionality—responding only when necessary, and doing so in a way that promotes stability, predictability, and confidence in the marketplace.

Clarity, Transparency, and Guidance

One of the standout announcements from Cardell’s speech was the CMA’s intention to provide a "roadmap" for businesses operating within the digital markets. This roadmap will provide clarity about what firms can expect when navigating potential SMS designations, a process that has often left businesses in the dark. The CMA’s move to proactively issue guidance and consultation documents is aimed at making the regulatory journey smoother and more transparent.

This roadmap isn’t just about ticking boxes—it’s a thoughtful, ongoing dialogue between the CMA and businesses. Cardell emphasized that stakeholders, particularly in the tech sector, would be consulted at every step of the way, ensuring that regulation evolves in sync with the industry’s pace and needs. In short, the CMA is committed to predictability in a world where the only constant seems to be change.

As part of the roadmap’s evolution, businesses will get an early look at which areas the CMA plans to prioritize during its investigations. Whether it’s interoperability or data access, Cardell said the goal is to avoid ambiguity and deliver clear expectations for the market. That means fewer surprises and more confidence for businesses to invest and innovate in the UK.

The CMA’s Proportional Approach

The CMA’s approach to regulation is rooted in the principle of proportionality. For Cardell, this means focusing on high-impact issues that directly affect the UK market and consumers. Instead of launching a broad sweep of regulations, the CMA will tackle problems where the potential benefits are clear and measurable.

“We’re not here to burden businesses unnecessarily,” Cardell explained. “We’re here to create an environment where growth can thrive and competition can flourish. But if there are issues that need addressing—issues that harm consumers or stifle competition—we’ll act swiftly and decisively.”

This is where the ‘4Ps’ framework—Pace, Predictability, Proportionality, and Process—becomes essential. Cardell stressed that pace and predictability would help prevent protracted uncertainty, which often chills investment and stifles innovation. But it’s proportionality that underpins it all, and ensuring that regulatory action is just enough to address the problem (but not so heavy-handed that it dampens the sector's vitality).

Engaging Businesses, Building Trust

A refreshing part of Cardell’s speech was her emphasis on collaboration. Rather than viewing the CMA as a distant enforcer, she invited businesses to engage with the authority in a more direct and open way. With a proactive engagement strategy, the CMA plans to work hand-in-hand with stakeholders, making sure that businesses of all sizes—from global giants to UK-based startups—have their say in how the regulations evolve.

“We’re not here to work against businesses—we’re here to work alongside them,” Cardell said, addressing concerns about the burden of compliance. “We want to hear from you. We want to make sure the regulatory framework supports your innovation, not stifle it.”

As part of the engagement process, the CMA will continue to refine its approach based on feedback, ensuring that it is always in step with the evolving needs of the tech sector. And in a world where compliance can feel like navigating an endless sea of rules, this kind of transparency and dialogue is a welcome shift.

Building Consumer Trust, Not Just Protecting It

Cardell wrapped up her speech by discussing the consumer protection aspect of the CMA’s work. With the launch of new powers under the DMCCA, the CMA will be able to tackle unfair commercial practices with greater flexibility and direct enforcement—think drip pricing and fake reviews, two of the most significant concerns raised by businesses during consultations. However, the CMA isn’t jumping straight into enforcement. Instead, it will focus on providing businesses with clear guidance before taking action.

“The aim is to protect consumers while giving businesses the clarity they need to comply,” Cardell explained. By offering this balance, the CMA hopes to build trust with both businesses and consumers.

As Cardell concluded, she reiterated that the CMA is committed to creating a regulatory environment that promotes growth, fosters innovation, and protects both consumers and businesses. The roadmap for regulating Big Tech will provide clear, actionable guidance, helping UK businesses to stay ahead of the curve without feeling burdened by an overzealous regulator.

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