The Competition and Markets Authority (CMA) is the UK's leading authority on competition and consumer protection, responsible for merger control and enforcing competition laws. With the UK's exit from the EU, the CMA's role has expanded, particularly in reviewing global deals and anti-competitive conduct affecting the UK market.

In response to the rapid growth of the digital sector and concerns over market power concentration among a few tech firms, the UK government is introducing a new pro-competition regime for digital markets. This initiative follows recommendations from a Digital Competition Expert Panel, which suggested updating merger and antitrust enforcement rules to better address challenges posed by digital markets.

The proposed Digital Markets, Competition and Consumers Bill (DMCC Bill) will empower the CMA to designate firms with Strategic Market Status (SMS) and implement Conduct Requirements and Pro-Competition Interventions. This targeted approach aims to prevent harmful practices, promote competition, and ensure that challenger firms can innovate effectively.

The CMA has outlined its commitment to a targeted, evidence-based approach in implementing the new regime, emphasizing the importance of stakeholder engagement and collaboration with SMS firms. The authority plans to initiate several SMS investigations shortly after receiving the necessary powers.

Additionally, the CMA is actively engaging with stakeholders in the AI sector, focusing on the competitive landscape of AI foundation models. The authority has proposed guiding principles to ensure that the development and deployment of AI technologies promote competition and protect consumers.