Corporate report

Memorandum of Understanding on the governance of the Digital Markets Unit between the Department for Science, Innovation and Technology and the Department for Business and Trade

Published 7 July 2026

Purpose

1. The government established a Digital Markets Unit (DMU) within the Competition and Markets Authority (CMA) to oversee and enforce Part 1 of the Digital Markets, Competition and Consumers (DMCC) Act 2024.

2. This Memorandum of Understanding (MoU) sets out the Department for Science, Innovation and Technology (DSIT)’s role in the sponsorship arrangements of the CMA and the digital markets regime under the DMCC Act 2024. It is not intended to have legal effect and will be reviewed once every three years by DBT and DSIT.

3. This MoU is to be read alongside other material concerning the relations between the CMA, HM Treasury (HMT), DBT and DSIT, including:

• the DMCC Act 2024
• the government’s Strategic Steer to the Competition and Markets Authority
• the Framework Document between DBT and the CMA
• HM Treasury’s guidance on Managing Public Money
• any relevant statute

MoU scope

4. DBT and HMT will continue in their roles as sponsor departments of the CMA, and this MoU does not change existing responsibilities. This MoU provides DSIT with a specific role in the sponsorship arrangement, in areas of governance related to the DMU and the digital markets regime.

MoU term

5. This MoU shall take effect on the day it is signed by both parties. It will be reviewed once every three years by DBT and DSIT or sooner if both parties agree.

Roles and responsibilities

Role of the CMA

6. The CMA was established on 1 April 2014 by the Enterprise and Regulatory Reform Act 2013 (ERRA 2013). It is an independent non-ministerial government department and is the UK’s principal competition and consumer authority.

7. As an administrative unit of the CMA, the DMU is subject to the CMA’s governance, oversight and decision-making structures, notably including those set out in the DMCC Act 2024 in relation to the digital markets regime.

Role of DBT and HMT

8. DBT is the CMA’s ministerial sponsor government department, and it sets the wider framework for competition and consumer policy to deliver the government’s objectives.

DBT’s governance responsibilities include:

8.1. Strategic direction: DBT is responsible for reviewing the Framework Document between CMA and DBT once every three years, and publishing a regular Strategic Steer, at least once every Parliamentary term.

8.2. Appointments: The Secretary of State for DBT appoints the Chair, Board members and Panel Members to ensure the CMA is quorate and sufficiently resourced, and sets the terms and conditions according to which they hold and vacate their appointment. The Secretary of State for DBT also appoints the Chief Executive and sets the terms and conditions according to which they hold and vacate their appointment.

8.3. Performance management: The CMA reports annually to DBT and HMT on delivery, resources, timescales and performance. The CMA, DBT and HMT hold formal review meetings at mid and end year to discuss performance.

8.4. Investigative assistance: Under the DMCC Act, the CMA has new powers to cooperate with requests to support competition investigations from international counterparts. This is possible where there is an agreement in place between the UK and the overseas government. Outside of an agreement, if the CMA wishes to accept a request it must first notify the DBT Secretary of State of its decision and the reasons for it.

9. The competition spending team in HMT is the primary contact for the CMA on financial issues.

HMT’s governance responsibilities include:

9.1. Strategic direction: HMT signs off both the Framework Document and the Strategic Steer.

9.2. Performance Management: The CMA reports annually to DBT and HMT on delivery, resources, timescales and performance. The CMA, DBT and HMT hold formal review meetings at mid and end year to discuss performance.

Role of DSIT

10. DSIT is responsible for the digital economy, and the owner of the relationships with current and potential future firms with Strategic Market Status (SMS), as well as the wider digital technology sector. It is therefore important that DSIT has an interest in ensuring the CMA’s operation of the digital markets regime is successful and promotes competition in an effective and proportionate way that supports the growth and dynamism of the digital tech sector. This MoU sets out DSIT’s role in the government sponsorship of the CMA.

DSIT’s role in the sponsorship of the CMA

11. This section details the role of DSIT in the governance of the CMA.

Framework Document

12. DSIT role: DSIT may wish to offer views on any proposed changes to the governance of the DMU. DSIT officials are therefore to be consulted on, and involved with, the drafting of any sections of a new Framework Document which relate to the DMU and the digital markets regime.

Strategic Steer

13. DSIT role: DSIT may wish to offer views on government’s priorities for the CMA where they relate to the DMU. DSIT officials are therefore to be consulted on, and involved with, the drafting of any sections of a new Strategic Steer which relate to the DMU and the digital markets regime.

Appointments

14. DSIT role: DSIT may be able to use their digital expertise and relationships with the tech sector to support appointments. DSIT are therefore to be consulted at an official level when Non-Executive Directors and Panel Members with digital expertise are appointed. This consultation could include advice on job descriptions, shortlists, required skill sets.

Letters to the CMA

15. DSIT role: DBT and DSIT should be aligned on the content of any letters being sent to the CMA where they apply to the work of the DMU. DSIT and DBT Ministers are therefore to be copied into any letters to the CMA relating to the DMU. DSIT and DBT officials are to be given visibility over these letters at official level prior to sending and consideration should always be given as to whether a joint letter would be appropriate.

Performance Management

16. DSIT role: DSIT may be able to offer support and unique perspectives into the performance and objectives of the DMU at performance management meetings.

Therefore:

16.1. DSIT Director General will be invited to join all mid/end year reviews.

16.2. Via the Coordination Forum, both departments will continue to collaborate in relation to the operation of the regime.

CMA Guidance

17. DSIT role: When guidance relating to the operation of the DMU is being prepared by the CMA, prior to DBT Secretary of State sign-off, DSIT officials should be consulted on this guidance, including being provided with the opportunity for DSIT Secretary of State to provide comments.

Public announcements

18. At times the CMA may make public pronouncements regarding the operations of the CMA and the DMU. This may include announcements of actions taken by the CMA under the digital market powers, or of appointment of new board members with specific DMU responsibilities or relevance. In these cases, both departments may wish to make public statements acknowledging or commenting more widely on these developments.

19. In these scenarios both departments will co-ordinate at an official level, including joint or parallel submissions to Ministers and the CMA, where appropriate.

20. The formal announcements of public appointments and other reporting, for example, the CMA Annual Report, remain the responsibility of DBT.

Signatures

This MoU has been executed by or on behalf of the Parties on the date stated at the beginning of this MoU.

SIGNED for and on behalf of THE DEPARTMENT FOR SCIENCE, INNOVATION AND TECHNOLOGY by a duly authorised signatory:

Print name: Emily Middleton

Title: Director General, Digital Transformation

SIGNED for and on behalf of THE DEPARTMENT FOR BUSINESS AND TRADE by a duly authorised signatory:

Print name: Gavin Lambert

Title: Director General of Competition, Markets & Regulatory Reform