Part 1: Digital Markets Final offer mechanism Section 40: Final offer mechanism
This section sets out the process the CMA must follow if it decides to use FOM.
	Subsection (1) requires the CMA to give a notice (the "final offer initiation notice") to the two parties of its decision to use FOM.
	Subsection (2) sets out the information that must be contained in the notice, which includes a description of the enforcement order breach that has triggered FOM. Where multiple breaches of enforcement orders are found, either as a result of one investigation or several separate investigations, the CMA can choose to combine the breaches for the purposes of FOM, where appropriate. The notice must also specify the submission date on or before which final offer payment terms are to be submitted to the CMA.
	Subsection (3) requires the CMA to publish a statement about the use of FOM in each particular case and sets out the contents for the statement. The statement must be published as soon as reasonably practicable after the final offer initiation notice is issued. It must specify if the CMA is considering taking any other action to address the underlying cause of the breach which led to the use of FOM. For example, a pro-competition order, instructing a designated undertaking to provide access for third parties to consumer data held by the undertaking, could also be used to rebalance bargaining power within that digital activity.
	Subsection (4) provides that, after giving a final offer initiation notice, the CMA can subsequently revise certain details. It can change its view of the transaction or the third party, provided they remain substantially the same; it can update the list of joined or grouped third parties, if those parties are making a collective submission of payment terms; and it can change the date on or before which final offer payment terms need to be submitted to the CMA.
	Subsection (5) requires the CMA to issue a revised version of the final offer initiation notice to the designated undertaking and the third party. Subsection (6) clarifies that "the third party" refers to the persons who were the joined or grouped third parties before the list was updated and any persons who are being added to the joined or grouped third parties.
	Subsection (8) sets out the powers that the CMA has for the gathering and sharing of information between the designated undertaking and the third party to ensure that they can each submit well-informed final offer payment terms. Powers include requiring parties to provide information to the CMA, which may in turn be shared with the other party.