Part 1: Digital Markets Miscellaneous Section 110: Power to charge levy
This section will give the CMA a delegated power to collect a levy from designated undertakings to recoup costs associated with delivering the digital markets regime.
	Subsection (1) sets out that the CMA can require undertakings which have been designated with SMS to pay a levy, and that the requirement to pay the levy will relate to a given ‘chargeable year’, which is defined in subsection (10) as the period of 12 months ending with 31 March. It establishes that designated undertakings will be required to pay the levy in any such year where they have an active SMS designation, whether that designation is in place for the full year or only part of it.
	Subsection (2) sets out that the CMA will make rules to establish the methodology they will use for calculating the levy, and that the CMA must comply with these rules once created. Subsection (3) sets out that the CMA will be able to update or change these rules.
	Subsection (4) sets out a number of obligations that the levy rules must comply with. These are that:
Paragraph (a) - the CMA cannot collect more money through the levy than it spends delivering the regime in any given chargeable year. Subsection (10), paragraph (b) establishes that the cost of delivering the regime should not include costs associated with litigation.
Paragraph (b) - the rules must set out how the cost of the levy is split between designated undertakings. For example, split evenly between undertakings which have been designated, or proportionately based on the number of designated activities each undertaking has.
Paragraph (c) - if an undertaking only has SMS designation for part of a year, the amount of levy it pays should be proportionate to the amount of time it has a designation. For example, if it had been designated for six months of the year, it would pay 50% of the amount that it might have to pay if it had been designated for the full year.
Paragraph (d) - the rules must set out how the CMA calculates its anticipated costs in a year. This will be the amount that it bases its initial levy charges on at the start of the year.
Paragraph (e) - As the amount identified when complying with (4)(d) might change if the CMA ultimately carries out more or less work than expected, the rules must also set out how the CMA will calculate its actual costs, so that it can increase or reduce the amount of levy charged to designated undertakings at the end of the year. This will support the CMA’s compliance with (4)(a), ensuring that the CMA does not collect more than it actually spends on the regime.
Paragraph (f) - the CMA will need to set out how repayment or crediting of overpayment would be carried out if the CMA’s estimates for its spending end up being greater than its actual costs.
Paragraph (g) - the CMA should make sure that repayment or crediting of designated undertakings is proportionate to the amount that was paid by a designated undertaking in that year.
Paragraph (h) - the CMA will need to set out how additional charges would be made to designated undertakings if the CMA’s estimates for its spending end up being less than its actual costs.
Paragraph (i) - additional charges should be in proportion to the amount already paid by a designated undertaking in that year.
Paragraph (j) - the rules will need to set out how the CMA will administer the levy, for example the processes that will be used to design, calculate and charge for it, and how the levy is to be paid, for example setting out when levy payments are due.
	Subsection (5) establishes that the CMA is able to charge interest on the late payment of levy fees, and sets the rate of interest as that in section 17 of the Judgments Act 1838, which is currently 8%. Subsection (6) clarifies that stipulations made for the administration of the levy in subsection (5), specifically references to amounts payable, do not include any interest that may be charged. Subsection (7) specifies that any interest collected must be returned to the Consolidated fund.
	Subsections (8) to (11) set out how the levy rules will be created and published. Before the levy rules can be implemented, the CMA will need to consult such persons as it considers appropriate (for example, undertakings which have or who may be designated) on the draft rules and arrange for the draft rules to be laid before Parliament. The same conditions apply should the CMA seek to amend or replace the levy rules. The final rules, including where they are amended or replaced, must be published.
	If a designated undertaking fails to pay the levy, subsection (12) allows the CMA to recover the amount due through the courts as a debt owed to it by the designated undertaking.