In a recent address, Marcus Bokkerink, Chair of the Competition and Markets Authority (CMA), highlighted the dual importance of fostering competition and protecting consumers in the evolving digital economy, particularly as artificial intelligence (AI) becomes increasingly prevalent.

Bokkerink explained that effective competition and consumer protection are essential for ensuring that markets remain vibrant and that consumers have access to fair deals. He noted that when competition thrives, businesses are incentivized to innovate and provide better choices, quality, and prices. Conversely, when a few dominant players engage in unfair practices, it leads to limited choices and rising costs for consumers.

The CMA is adapting its strategies to address the unique challenges posed by digital markets and AI. This includes cracking down on misleading online practices such as fake reviews and dark patterns that manipulate consumer behavior. The CMA has initiated enforcement actions and educational campaigns to raise awareness about these issues and protect consumers from deceptive practices.

To ensure competition in digital markets, the CMA is investigating major online platforms and their advertising practices. Ongoing probes include examining the terms governing access to the Apple App Store and whether Amazon unfairly benefits its retail arm using data from marketplace sellers. The CMA is also taking a forward-looking approach to merger control, as demonstrated by its decision regarding Microsoft's acquisition of Activision Blizzard, which included divesting cloud streaming rights to maintain competition.

Looking ahead, the CMA is advocating for new legislation, the Digital Markets, Competition and Consumers Bill, which aims to enhance its ability to protect consumers and ensure competitive markets. This legislation is designed to address the challenges posed by entrenched market power while fostering innovation.

Bokkerink concluded by emphasizing the need for a proactive approach to AI regulation, proposing principles that promote competition and consumer protection in AI markets. These principles include ensuring fair access to resources, maintaining diversity in business models, and promoting transparency and accountability in AI development.