UK CMA Impact of Algorithms

On Jan. 19, UK CMA called for evidence on algorithms, competition.

  • UK CMA issued call for information on algorithms, competition and consumer harm.
  • Lifted lid on impact of algorithms, published new research showing how they can reduce competition in digital markets and harm consumers if they are misused.
  • Follows UK GVT Dec. 2020, updated on understanding public attitudes, see #93079.
  • Follows UK GVT Nov. 2020, issued report on bias in algorithmic decisions, see #91954.
  • Consultation Scope
  • Competition and Markets Authority invites views/evidence on harms outlined in paper.
  • Seeks information on issues with firms that CMA could examine/consider future action.
  • CMA will use the responses to inform and enhance its analyzing algorithms program.
  • Invites academics/organizations interested in collaborating on program to get in touch.
  • Also announced DaTA unit expert panel discussion on Jan. 25, to explore this further.
  • Research
  • Research by CMA's data, technology and analytics (DaTA) unit has that found algorithms can reduce competition in digital markets and harm consumers if misused.
  • Most algorithms used by private firms online subject to little/no regulatory oversight.
  • CMA research found more monitoring/action is required by regulators, including CMA.
  • Effectiveness
  • Comments to be received by Mar. 16, 2021.

Regulators UK CMA
Entity Types Bank; BHC; BS; CNSM; Corp; IA; Ins; Inv Co; MG Orig; Servicer
Reference CP, PR 1/19/2021; Fintech
Functions Compliance; C-Suite; Financial; HR; Legal; Operations; Privacy; Product; Reporting; Research; Risk; Technology
Countries United Kingdom
Products Banking; Corporate; Insurance; Loan; Mortgage; Wealth Mgt
Regions EMEA
Rule Type Guidance
Rule Date 1/19/2021
Effective Date 3/16/2021
Rule Id 95836
Linked to N/A
Reg. Last Update 1/19/2021
Report Section UK

Last substantive update on 01/20/2021