Part 1: Digital Markets Power to designate undertaking as having SMS Section 2: Designation of undertaking
This section gives the CMA the power to designate undertakings (as defined in section 118) as having strategic market status ("SMS") in respect of a digital activity. Only those undertakings designated with SMS will be subject to the digital markets regime.
	Subsection (1) provides that the CMA may designate an undertaking as having SMS in respect of a digital activity carried out by the undertaking, where the CMA considers that the criteria listed in paragraphs (a) and (b) are met. These criteria are that the digital activity is linked to the UK (as set out in section 4) and that the undertaking meets the SMS conditions in respect of the digital activity.
	Subsection (2) sets out the SMS conditions. The conditions are that the undertaking has, in respect of the digital activity, both substantial and entrenched market power (see section 5) and a position of strategic significance (see section 6).
	Subsection (3) provides that the CMA’s power to designate is subject to the turnover condition (in section 7).
	Under subsection (4), the CMA may only make a designation after carrying out an SMS investigation in accordance with Chapter 2.