1、The CMAs Digital Markets Strategy July 2019 Crown copyright 2019 You may reuse this information (not including logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk or write to the Information Policy Tea

2、m, The National Archives, Kew, London TW9 4DU, or email: psinationalarchives.gsi.gov.uk. 3 Contents Page Foreword . 4 1. Introduction . 5 Why are digital markets different?. 5 What are we trying to achieve in digital markets? . 6 Why a digital markets strategy? . 6 2. Our five Strategic Aims . 8 3.

3、Priority focus areas . 9 Priority 1: Consumer and antitrust enforcement and merger assessment . 9 Priority 2: The work of our Data, Technology and Analytics (DaTA) unit . 9 Priority 3: Market study on online platforms and digital advertising . 10 Priority 4: Review our mergers approach to digital ma

4、rkets as necessary . 10 Priority 5: Policy work to consider a possible digital markets unit . 11 Priority 6: Proposals to reform our enforcement tools . 11 Priority 7: International cooperation . 12 4. Appendix examples of recent CMA digital markets work . 14 4 Foreword The digital economy is transf

5、orming the way we live our lives: people are in contact with companies 24/7 on their devices, business models are changing at pace, and innovation is the key to success across all markets. Without doubt our lives are enhanced in many ways through digital developments: consumers can make more informe

6、d decisions with greater access to information, and businesses can reach millions of customers at lower cost. Digital advances make most markets truly international. Competition principles are about making sure that markets work well for consumers across the entire economy. Not since the industrial

7、age has the world gone through such a profound change as that unfolding today with the emergence of the digital economy, which is giving rise to new forms of employment, skills, and new leisure activities. It is imperative that competition authorities, in collaboration with governments, consumers, a

8、nd industry participants, develop a path that protects consumers while ensuring robust competitive and innovative digital markets. Most of the markets that are the focus of regulatory interest involve international companies, often headquartered outside the UK, and many are global in nature. We need

9、 to work with other authorities around the world to share knowledge and develop a common understanding where possible. The profound changes being brought about by the digital economy have led us to develop this Digital Markets Strategy, which sets out the CMAs approach to these challenges. As an org

10、anisation we have been working in this space for some time and we renewed our prioritisation of Digital in our recent Annual Plan. The purpose of this document is to draw our work together in one place and indicate our ambition for the coming years. I welcome input from the many interested parties a

11、s our Strategy evolves over time. The CMA will draw on the suggestions made in the Furman Report by establishing participative relationships where possible as we work out the right response to new challenges presented by digital markets. Andrea Coscelli Chief Executive Officer Competition and Market

12、s Authority 5 1.Introduction Why are digital markets different? 1.1 Digital markets are those where companies develop and apply new technologies to existing businesses, or create brand new services using digital capabilities. Their reach can extend across the entire economy. This is very different f

13、rom what people were familiar with ten or twenty years ago. Many services are completely new whether social media, most apps, or any kind of online shopping. 1.2 Almost all aspects of our lives are touched by digital evolution. Many services are free to consumers. People have benefited hugely, throu

14、gh new employment opportunities, greater convenience, personalisation of products and services, rapid delivery of products, easier connection to family and friends, and innovation from smaller companies now able to reach a global customer base. 1.3 Competition is the main tool to ensure that digital

15、 companies continue to innovate, support new entrants to the market so that monopolies do not form, and ensure that consumers have their rights protected and receive better products. The CMA oversees competition across the economy. This puts us in a unique position of responsibility to ensure that c

16、onditions exist to support strong competition and protect consumer interests. 1.4 Our position gives us particular insight into the underlying features of these markets, which are also increasingly well documented through a series of authoritative reports including:1 substantial network effects, eco

17、nomies of scale and scope, the role of data and the computing power to use it, scope for personalisation, and market concentration. 1.5 Most of these are not new individually, but in combination they are novel. Combined with the pace of change, it can be hard for both consumers and 1 J Cremer, Y-A D

18、e Montjoye, H Schweitzer, European Commission, Directorate-General for Competition, Competition Policy for the Digital Era (4 April 2019), http:/ec.europa.eu/competition/publications/reports/kd0419345enn.pdf EC Competition Report; J Furman and the Digital Competition Expert Panel, H.M. Treasury, Unl

19、ocking Digital Competition: Report of the Digital Competition Expert Panel (13 March 2019), https:/assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/ 785547/unlocking_digital_competition_furman_review_web.pdf Furman Report; George J Stigler Centre for the Study

20、of the Economy and the State (15 May 2019), Study of Digital Platforms Market Structure and Antitrust: https:/research.chicagobooth.edu/-/media/research/stigler/pdfs/market-structure-report-as-of-15-may- 2019.pdf?la=en Lear report for the CMA, Ex-post Assessment of merger control decisions in Digita

21、l Markets (9 May 2019): https:/assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/803576/CMA_ past_digital_mergers_GOV.UK_version.pdf 6 public authorities to keep up. The speed of change and the vast international reach of major players are particularly challengi

22、ng for authorities acting unilaterally. 1.6 Some of these features, or their effects, raise questions, including: firms use of peoples data; the market power or gatekeeper status of certain platforms; use of increasingly sophisticated technology to target advertising; or the risk of so-called killer

23、 acquisitions big companies buying smaller innovative ones with a view to extinguishing them as potential rivals. And all the time consumers reliance on these services is increasing. What are we trying to achieve in digital markets? 1.7 The CMA works to promote competition for the benefit of consume

24、rs, both within and outside the UK, to make markets work well for consumers, businesses, and the economy. 1.8 In digital markets this means first and foremost ensuring that the enormous innovation and benefits brought about through digitalisation can continue. There needs to be a level playing field

25、 so that all businesses large and small, incumbents and new entrants alike can compete on the merits of their offering; consumers should be able to feel trust in online markets; and new competitors need to be able to enter, bringing yet more services to the market. 1.9 The effects of digitalisation

26、are felt across many sectors and in many dimensions. To achieve our aims we must work with a wide range of other authorities: other cross-sector bodies like the Information Commissioners Office and Trading Standards, sector-specific regulators like Ofcom and the Financial Conduct Authority, and our

27、counterparts around the world as we all deal with these global changes. Why a digital markets strategy? 1.10 The CMA and its predecessors have always attempted to keep pace with markets changing around us, in order to keep serving consumers interests.2 Examples include: (a) Policy and research paper

28、s, for example on personalised pricing and the use of algorithms. 2 The appendix gives a fuller sense of the range of work we have done in digital markets. 7 (b) Markets work, such as our retail banking market investigation, which led to the ground-breaking Open Banking remedy, and a major study on

29、digital comparison tools. (c) Many competition and consumer enforcement cases, on subjects as varied as online poster sales, hotel booking sites, celebrity endorsements on social media, online gambling, and online dating. (d) Merger reviews, in sectors such as cashback websites, credit comparison pl

30、atforms and credit checking tools, and online food platforms. 1.11 But we need to become ever more effective at this, and to do so in a way that is unified across our tools, and in strong collaboration with other authorities in the UK and abroad. 1.12 In order to assist all interested parties in und

31、erstanding our priorities, this document sets out five strategic aims, and seven priority focus areas. It is both forward-looking and explains how the work we are doing now builds on past outputs. 8 2.Our five Strategic Aims Based on our previous work, and from engagement in public debate, we have d

32、eveloped five strategic aims, supported by seven priority areas of focus. Our strategic aims and priority areas of work We will use our tools effectively and efficiently, considering how best to target our antitrust and consumer enforcement action, market studies, and merger assessment to digital ma

33、rkets. We will build knowledge and skills to ensure we understand digital business models, and their opportunities and risks. We will adapt, or propose adaptations to, our tools where needed to meet the challenges of the digital economy. We will support the Governments consideration of the need, and

34、 options, for new regulatory structures in digital markets. We will build on our existing remedies expertise with an increased focus on potential digital-focused remedies, such as data portability or interoperability. Online platforms and digital advertising market study Reform proposals Review merg

35、er regime Policy Input to government on digital markets unit Consumer enforcement Antitrust enforcement Merger assessment A. Use our existing tools effectively and efficiently B. Build our knowledge and capability C. Adapt our tools to the digital economy D. Consider the case and options for regulat

36、ion E. Consider potential future remedies in digital markets Work of the DaTA unit International cooperation A. Use our existing tools to maximum effect B. Build knowledge and capability C. Adapt our tools to digital markets D. Consider the case and options for regulation E. Consider potential futur

37、e remedies 9 3.Priority focus areas Priority 1: Consumer and antitrust enforcement and merger assessment 3.1 Even though many of our enforcement and merger assessment tools were built for the analogue age, and would therefore benefit from certain reforms to future-proof their effectiveness, it is im

38、portant to use our existing powers to the fullest extent possible. Such action incudes investigating fake online reviews, celebrity endorsements, the conduct of price comparison websites and online platforms, and mergers in fast moving markets. We are increasing our efforts to scan the horizon to an

39、ticipate and target poor practices and areas of concern in digital markets which may form the basis for future enforcement action. Priority 2: The work of our Data, Technology and Analytics (DaTA) unit 3.2 Since our 2018 - 2019 Annual Report announced that we would establish a new team to boost our

40、digital capabilities, we established and are scaling up a Data, Technology and Analytics (DaTA) unit. The units aim is to support the CMA with technical understanding of working with data and using algorithms. 3.3 The unit has team members with data engineering, data science, and data and technology

41、 market intelligence expertise. We have been building our ability to capture, analyse, and draw conclusions from small and large data sets, use machine learning and artificial intelligence techniques, and understand firms use of data and algorithms. 3.4 As part of this work we note the Furman Report

42、s Strategic Recommendation D to continue to monitor the development of Machine Learning and Artificial Intelligence to ensure it does not lead to anti-competitive behaviour or consumer detriment, particularly in relation to vulnerable consumers. 3.5 The unit conducts research and policy work, and su

43、pports data gathering and analysis for case teams across the organisation. It is also contributing to the creation of technology remedies, such as interoperability or techniques for A. Use our existing tools to maximum effect B. Build knowledge and capability C. Adapt our tools to digital markets D.

44、 Consider the case and options for regulation E. Consider potential future remedies A. Use our existing tools to maximum effect B. Build knowledge and capability C. Adapt our tools to digital markets D. Consider the case and options for regulation E. Consider potential future remedies 10 anonymous d

45、ata sharing, and understanding the data and analytical skills, and powers, that would be needed for a digital markets unit. Priority 3: Market study on online platforms and digital advertising 3.6 We have launched a market study into online platforms and digital advertising. This is looking at a num

46、ber of themes: the market power of digital platforms in consumer-facing markets; lack of consumer control over data; competition in the supply of digital advertising; and Furman proposals relating particularly to regime changes and institutional implications. 3.7 This study is a core part of our Digital Markets Strategy. A study like this could result in a range of outcomes, but it will certainly inform our thinking on platforms, and will help us to ensure that any future regulation is based on a good understanding of advertising-funded platform business models. 3.8 While o