Ofcom has published an update to its area of focus under its Digital Markets Strategy.

The Digital Markets Strategy was first published in September 2022 and set out Ofcom’s focus areas for its work as: net neutrality; online personal communications services and digital content gateways; and cloud services. Since then, in addition to the passage of the Digital Markets, Competition and Consumers Act 2024 (“DMCC Act”)(which includes provisions for the CMA to coordinate with other regulators), Ofcom has concluded its market study into cloud infrastructure services, updated its guidance on net neutrality, and published a discussion document on personal online communications services.

Looking ahead, Ofcom has set out further work that it will undertake “to examine how digital markets are delivering for consumers and businesses in the communications and media sectors”.

Four areas of focus in particular are highlighted:

1. The impact of large digital firms on mobile broadband

The update explains that Ofcom’s duties include “ensuring mobile broadband markets function in the interests of citizens and consumers”. In the light of the CMA finding in 2022 that Apple and Google have substantial and entrenched market power in mobile operating systems, Ofcom will concentrate on understanding if this could affect the development of network splicing and, if so, whether concerns can be addressed by the new DMCC Act regime or by Ofcom’s own regulatory powers.

2. The impact of large digital firms on the UK’s media sector

Ofcom states that “it is important for the delivery of Ofcom’s wider goals in the media sector that competition works effectively in the digital markets that supply news and other content that audiences value and rely on”. The update explains that the impact of online distribution is an increasing focus of Ofcom’s work as audiences move from traditional media to online services. As a result of these change in habits, news publishers and other content creators have raised concerns about the relative bargaining power of online platforms, and the CMA has pointed to “wide-ranging problems with competition in digital advertising markets”. Ofcom commits to continuing to collaborate with the CMA “to help to ensure that the digital markets regime secures good outcomes for the future of quality news creation and the future of public service media in the UK”.

3. Continuing monitoring of digital infrastructure trends

Ofcom promises to “keep building [its] understanding of how digital infrastructure is developing, identifying the potential benefits and risks to competition and how this may impact outcomes for businesses and consumers”. An example it provides as an “emerging area of interest” is edge computing which can improve latency and reduce data transmission costs.

4. Managing the interactions between online safety and digital markets regulation

Finally, Ofcom points out that it is “mindful of broader potential interactions between our online safety activities and the CMA’s digital markets activities, on which we expect to collaborate and coordinate with the CMA, as relevant”. As the respective regulators begin to make interventions, Ofcom states that it will “consider which targeted areas of policy interaction would benefit from further collaboration and coordination”.

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