Part 1: Digital Markets Power to designate undertaking as having SMS Section 6: Position of strategic significance
This section sets out when an undertaking has a position of strategic significance.
	The section sets out four conditions, at least one of which must be met in order for an undertaking to have a position of strategic significance.
	In paragraph (a), having a position of significant size could refer to the number of users in relation to the relevant digital activity. A position of significant size or scale may also depend on the undertaking’s size relative to the digital activity. For example, if the total number of potential users of a digital activity is small (because the activity is relevant to businesses in a particular sector only) but the undertaking captures a large proportion of those users, it could be considered that the undertaking has achieved a position of significant scale in respect of the activity.
	Paragraph (b) is intended to cover scenarios where the digital activity as carried out by the undertaking plays an important role in the day-to-day business or critical operations of a significant number of other undertakings which would be impacted by the undertaking’s conduct of the digital activity. For example, this condition could capture a situation where large numbers of businesses advertise on a search engine to reach their customers or use particular software to carry on their activity.
	Paragraph (c) is intended to cover circumstances in which the undertaking can use its position in the digital activity to leverage or expand into a range of other activities. For example, an undertaking with substantial and entrenched market power in the sale of operating systems may be able to use this power to bundle other services, such as its own online communication service, with its operating system, making it harder for users to switch.
	Paragraph (d) is intended to cover scenarios where an undertaking’s position enables it to determine or substantially influence how other undertakings operate (that is to say, to set the rules of the game). For example, if a search engine requires its customers to use certain mobile friendly formats to benefit from advantageous distribution, that may have important effects on how mobile webpages are designed across the internet.