Big tech firms should face harsher penalties for abusing their market power.
Legislation that could allow firms to be fined up to 10% of global annual income for abuses should be published by the government.
The Digital Markets Bill was announced in the Queen's Speech.
Consumers are at risk until this legislation is enacted.
Big technology businesses view fines as a small business cost, according to the committee.
Existing tools to regulate competition are not suitable to deal with the market power held by a small number of digital firms, according to the government.
The creation of a digital markets unit was proposed.
The new bill gives the unit the power to tackle anti-competitive behavior by tech giants.
The committee's recommendations will be carefully considered and responded to in due course, according to the CMA.
The authority ordered Meta to sell Giphy after acquiring it.
It was the first time the UK regulators had blocked an acquisition by a tech giant, and it was seen as signalling a new determination to scrutinize big digital deals.
The Competition, Consumer and Digital Markets Bill has wide support and should be prioritised, according to the chair of the BEIS committee.
There are many areas in the economy where stronger competition is needed in the interests of consumers, small business and economic growth, and this bill is an important stepping stone to driving this issue forward.
The Coalition for a Digital Economy told the committee that the new regime could threaten the UK's position as the tech capital of Europe.
It focused too much on taking action against the biggest firms and not enough on encouraging start-ups to challenge them, according to them.
According to the government, the reforms to address competition issues in digital markets are important.
The draft legislation will be published in the Queen's Speech and will be taken forward as soon as possible.
All Rights Reserved © 2024
