DMCC Act: helping small businesses compete against tech giants?

The UK’s new Digital Markets, Competition and Consumers (DMCC) Act is set to take effect next year. According to Sarah Cardell, head of the Competition and Markets Authority (CMA), it is expected to empower smaller UK businesses to compete against tech giants by enhancing market access and data control. Speaking at an AI conference, Cardell emphasised that competition fosters investment rather than hinders it. She dismissed concerns that the new legislation might deter investors, instead highlighting its role in promoting innovation and offering smaller companies a fairer playing field.

Prime Minister Keir Starmer recently urged the CMA to focus on economic growth and reduce regulatory burdens to boost the UK’s attractiveness for investment. Cardell noted that the DMCC Act will prevent large digital companies from requiring smaller firms to share data in ways they cannot control, creating new opportunities for product innovation and competition. Cardell stressed that the CMA’s role is to support, not hinder, market evolution, especially in emerging sectors like AI, where competition will drive not only prices but also productivity and technological advancement. The CMA aims to adopt a measured regulatory approach that encourages growth without heavy-handed interference.

More information on the DMCC Act is available in our Digital and data regulation guide. 

An overview of what the Act does, who will be impacted by it and key dates can be found via our Digital Legislation Tracker.