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Software: Licensing

Asked by Samantha NiblettLabourDepartment for Business and TradeTabled Answered 13 June 2025UIN 58397

The question

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of the new powers for the Competition and Markets Authority in the Digital Markets, Competition and Consumers Act 2024 to tackle restrictive software licensing on (a) consumers, (b) businesses and (c) the wider economy.

Answered by Justin Madders

The Digital Markets, Competition and Consumers Act 2024 has empowered the Competition and Markets Authority to designate firms which exert significant control in respect of digital activities with “Strategic Market Status” (SMS), following an evidence-based assessment.

The CMA can carry out investigations to determine the most appropriate remedies for a specific competition concern. Remedies will ensure designated firms treat businesses and consumers fairly, promote more dynamic markets and help new competitors enter the market. The CMA has already exercised its new powers by launching three SMS investigations into large technology firms in January this year.

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