United Kingdom: Competition and Markets Authority adopted rules on strategic market status levy under Digital Markets, Competition and Consumers Act

On 25 September 2025, the Competition and Markets Authority (CMA) adopted the rules on strategic market status (SMS) levy under section 110 of the DMCC Act. Section 110 allows the CMA to require designated undertakings to pay a levy, calculated by the CMA, to cover its digital market functions costs. The rules require firms with SMS to pay a levy to cover CMA’s qualifying Costs, including staff, non-staff, and overhead costs. The levy is proportional to the months a firm holds SMS in a chargeable year, from 1 April–31 March. It is divided equally among SMS firms and invoiced in two tranches, except for the inaugural 2025–26 year, when a single invoice is issued. Payment is due within 30 days, with interest on late payments, and overpayments or underpayments are adjusted in subsequent invoices. Firms pay for months designated, and if de-designated, the levy is recalculated among remaining SMS Firms.