Part 1: Digital Markets Power to designate undertaking as having SMS Section 7: The turnover condition
This section is about the turnover condition.
	Subsection (1) sets out that the turnover condition must be met for the CMA to be able to designate an undertaking as having SMS in respect of a digital activity.
	Subsection (2) sets out that the turnover condition is met in relation to an undertaking if the CMA estimates that the undertaking’s UK turnover in the relevant period exceeds £1 billion or that its global turnover in the relevant period exceeds £25 billion. Only one of these thresholds needs to be met for the turnover condition to be met. If the undertaking is part of a group (see section 117), then the turnover of the whole group should be considered. For example, if the undertaking is part of a larger conglomerate, the CMA must estimate the turnover of the larger conglomerate. Where the undertaking or group engages in non-digital activities, the CMA will have to take the turnover from those activities into account (see paragraphs 34 and 35 below).
	Subsection (3) gives the Secretary of State the power to amend the turnover thresholds in subsection (2). Subsection (4) provides that regulations made under subsection (3) are subject to the draft affirmative procedure (see section 337(3)).
	Subsection (5) requires the CMA to keep the thresholds under review and, from time to time, advise the Secretary of State as to whether they are still appropriate.
	Subsection (6) makes provision about the meaning of the "relevant period" and "relevant turnover". Paragraph (a) sets out that the "relevant period" is either the most recent period of 12 months in respect of which the CMA considers it can estimate the undertaking or group’s relevant turnover, or the period of 12 months immediately before that if the CMA estimates that the undertaking’s or group’s relevant turnover was higher in that earlier period. Paragraph (b) sets out that the "relevant turnover" of the undertaking or group is either the UK turnover or the global turnover of the undertaking or group.