The UK’s Competition and Markets Authority (CMA) has announced how it intends to operate the new digital markets competition regime as currently proposed by the Digital Markets, Competition and Consumers (DMCC) Bill in a move which will give Big Tech companies greater access to their rivals’ data and limit them from promoting their own products.

The competition watchdog said that firms designated as having Strategic Market Status (SMS) in relation to one or more digital activities will have to adhere to 11 principles.

If the CMA finds businesses are using their status to gain an unfair competitive advantage, it will take targeted and proportionate action to address the behaviour. In some cases, this will mean imposing conduct requirements on firms in relation to the digital activity for which they have been designated, the regulator said.

It gave examples of potential requirements, such as preventing SMS firms from preferencing their own products and services, or by making SMS firms provide competitors with greater access to data and functionality; requiring SMS firms to allow the products and services of other firms to work with their own, or ensuring SMS firms provide their users with an effective choice; and mandating SMS firms to trade on fairer terms or requiring them to increase transparency with respect to aspects of their algorithms.

Speaking at a conference in Silicon Valley, CMA boss Sarah Cardell said: “Today’s overview document not only provides clarity for UK parliamentarians, but also for digital firms and wider stakeholders about the approach the CMA intends to take.

“To ensure the new regime operates as effectively as possible, it’s crucial that we continue to engage widely with a range of stakeholders, from the major tech players to challengers and users.”

She added that the CMA will publish more detailed draft guidance once the DMCC is passed into law by Parliament.

The CMA has seen its position strengthened by the UK’s exit from the European Union, bolstering its oversight of Big Tech firms. The CMA served as the final hurdle to Microsoft’s $69 billion acquisition of game publisher Activision Blizzard and managed to draw key concessions from the deal. The regulator has also recently said it would launch a review into Microsoft’s relationship with ChatGPT company OpenAI.

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