Digital Markets, Competition and Consumers Act 2024

110 Power to charge levy

(1) The CMA may require an undertaking to pay it a levy in respect of a chargeable year during the whole or part of which the undertaking is a designated undertaking.

(2) The amount of the levy is to be calculated in accordance with rules made for the purposes of this section by the CMA (“the levy rules”).

(3) The CMA may amend or replace the levy rules.

(4) The levy rules must—

(a) secure that the aggregate amount payable in respect of a chargeable year is not to exceed the costs which the CMA incurs in exercising its digital markets functions during that year;

(b) make provision about how the aggregate amount payable in respect of a chargeable year is to be divided between the undertakings which are designated undertakings for the whole or part of that year;

(c) secure that where an undertaking is a designated undertaking for only part of a chargeable year, the amount of the levy payable by that undertaking in respect of that chargeable year is proportionately reduced;

(d) set out how the CMA is to estimate the costs which it expects to incur in exercising its digital markets functions during a chargeable year;

(e) set out how the CMA is to calculate the costs which it actually incurs in exercising its digital markets functions during a chargeable year;

(f) make provision about the repayment or crediting of any amounts of levy paid in respect of a chargeable year on the basis of the CMA’s estimate of the costs it would incur in exercising its digital markets functions during that year where the CMA’s estimated costs exceed the CMA’s actual costs of exercising those functions during that year;

(g) secure that any repayment or crediting in respect of a chargeable year in accordance with provision made under paragraph (f), so far as relating to an undertaking, is in proportion to the amount paid by that undertaking in respect of that year;

(h) make provision about the charging of amounts of levy in respect of a chargeable year where the CMA’s actual costs of exercising its digital markets functions during that year exceed the costs which the CMA estimated it would incur;

(i) secure that, where an undertaking is required to pay an amount of levy in respect of a chargeable year in accordance with provision made under paragraph (h), the amount which the undertaking is required to pay is in proportion to the amount already paid by the undertaking in respect of that year;

(j) make provision about the administration and payment of the levy.

(5) The levy rules may make provision for interest to be charged, at the rate specified for the time being in section 17 of the Judgments Act 1838, on any amount of levy not paid by the date on which it is due.

(6) References in subsection (4) to an amount payable by an undertaking do not include interest charged in accordance with provision made under subsection (5).

(7) The CMA must pay any amount that it receives in accordance with provision made under subsection (5) into the Consolidated Fund.

(8) The CMA must consult such persons as it considers appropriate before making the levy rules, including any amended or replacement levy rules (see section 113).

(9) The consultation must include a draft of the proposed levy rules.

(10) The CMA must, at the same time as beginning consultation under subsection (8), arrange for the draft of the proposed levy rules to be laid before Parliament.

(11) The CMA must publish the levy rules, including amended or replacement rules.

(12) An amount payable by an undertaking in accordance with this section and the levy rules is recoverable as a civil debt due to the CMA.

(13) For the purposes of this section—

(a) a chargeable year is a period of 12 months ending with 31 March;

(b) the CMA’s costs of exercising its digital markets functions do not include costs incurred by the CMA for the purposes of litigation.