Part 1

Digital Markets
Chapter 2

Strategic Market Status

Power to designate undertaking as having SMS

Designation of undertaking
2
1
The CMA may designate an undertaking as having strategic market status (“SMS”) in respect of a digital activity carried out by the undertaking where the CMA considers that—
a
the digital activity is linked to the United Kingdom (see section 4), and
b
the undertaking meets the SMS conditions in respect of the digital activity.
2
The SMS conditions are that the undertaking has—
a
substantial and entrenched market power (see section 5), and
b
a position of strategic significance (see section 6),
in respect of the digital activity.
3
Subsection (1) is subject to section 7 (the turnover condition).
4
The CMA may only designate an undertaking as having SMS in respect of a digital activity after carrying out an SMS investigation in accordance with this Chapter.
S. 2 not in force at Royal Assent, see s. 339(1)
S. 2 in force at 1.1.2025 by S.I. 2024/1226, regs. 1(2), 2(1)(2)