Online platforms bring huge benefits for businesses and society but there is a consensus that the concentration of power among a small number of firms is curtailing growth and having negative impacts on consumers and businesses which rely on them.

In November 2020 the government announced a new unit would be set up to enforce a new pro-competition regime to cover platforms with considerable market power – known as strategic market status. The new unit has kicked off its first work programme as it launches in ‘shadow’ non statutory form ahead of legislation granting its full powers.

The government has asked it to begin looking at how codes of conduct could work in practice to govern the relationship between digital platforms and groups such as small businesses which rely on them to advertise or use their services to reach their customers. It will take a sector neutral approach in examining the role of platforms across a range of digital markets, with a view to promoting competition

The Digital Secretary has asked it to work with the communications regulator Ofcom to look specifically at how a code would govern the relationships between platforms and content providers such as news publishers, including to ensure they are as fair and reasonable as possible.

This would pave the way for the future rules of the road and is alongside the wider work being done by the government, following the Cairncross Review and the package of support through the pandemic, to boost the sustainability of the press.

PPA CEO Owen Meredith commented: "We welcome the creation of the Digital Markets Unit within the CMA and the government’s commitment to introducing a new code of conduct that will govern the relationships between platforms and publishers in a way that ensures greater fairness, transparency and competition online. PPA look forward to engaging with the government and regulators throughout the consultation process to ensure the code design delivers on its promise for all publishers.”

Digital Secretary Oliver Dowden said:
"Today is a major milestone in the path to creating the world’s most competitive online markets, with consumers, entrepreneurs and content publishers at their heart.
The Digital Markets Unit has launched and I’ve asked it to begin by looking at the relationships between platforms and content providers, and platforms and digital advertisers.
This will pave the way for the development of new digital services and lower prices, give consumers more choice and control over their data, and support our news industry, which is vital to freedom of expression and our democratic values."