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<p>The Digital Services Tax is a proportionate tax addressing widely held concerns
with the tax paid by digital businesses. Pricing strategies reflect a range of factors
and are a matter for businesses.</p><p><strong><br></strong>It is for the Competition
and Markets Authority (CMA), as the UK’s independent competition authority, to investigate
specific markets and the behaviour of specific companies. The CMA’s recent market
study found that Google and Facebook have market power in search, social media and
online advertising markets. In response, on 27 November 2020, the Government announced
it is establishing a new pro-competition regime for digital markets, housed in the
CMA. We will consult on the form and function of the Digital Markets Unit in early
2021, and legislate to put it on a statutory footing as soon as parliamentary time
allows.</p>
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