“If we find that the market is not working well, there may be negative impacts on businesses and ultimately consumers through higher prices, lower service quality and reduced innovation. In these circumstances, Ofcom may make recommendations to the government to change regulations or policy and take competition or consumer enforcement action,” it stressed.
Ofcom said it had engaged closely with the Competition and Markets Authority (CMA) in planning the market study.
Over the next year, Ofcom will also launch a wider program of work to examine other digital markets, including online personal communication apps and devices for accessing audiovisual content.
“We are interested in how services such as WhatsApp, FaceTime and Zoom are impacting the role of traditional calling and messaging and how competition and innovation will develop in these markets over the coming years,” Ofcom said.