Part 1: Digital Markets Power to designate undertaking as having SMS Section 5: Substantial and entrenched market power
This section requires the CMA to look at a period of at least the next five years when assessing whether an undertaking has substantial and entrenched market power in respect of a digital activity. The underlying policy intent is that the CMA should be satisfied that the undertaking’s power and influence in the digital activity is neither small nor transient, based on their consideration of competitive conditions. However, the CMA is not required to demonstrate that the undertaking’s market power will definitely endure for a minimum period of five years. The intent is also that the CMA should not be prevented from considering past and present market conditions as part of this forward-looking assessment. This section does not require the CMA to undertake a formal market definition exercise as part of an SMS investigation.
	When carrying out the forward-looking assessment, the CMA must take into account expected or foreseeable developments if the CMA did not designate the undertaking as having SMS in respect of the digital activity to which the investigation relates. For instance, where an undertaking is already designated in respect of a digital activity, the CMA must consider what might happen if that designation and existing regulation relating to that designation (such as conduct requirements, described in Chapter 3 of this Part, or pro-competition interventions, described in Chapter 4 of this Part) were to be revoked; for example, a persistence in the undertaking’s power in respect of the digital activity following revocation. Where relevant, this would include consideration of expected or foreseeable future developments resulting from other types of regulation that were not dependent on the designation; for example, conduct requirements relating to a different digital activity, or regulation under a different regime.
	The CMA must consider whether the expected or foreseeable developments it has identified are capable of affecting the undertaking’s conduct in carrying on the digital activity.