Commercially Connected shorts 12 August 2026

This week we look at:

• UK: DMCC subscription contract rules to come into force earlier than expected
• UK: PPN 026: revised approach to social value in central government procurement
• EU Industrial Accelerator Act: market access meets industrial policy
• Global Sustainability & ESG Insights - July 2026

UK: DMCC subscription contract rules to come into force earlier than expected

On 9 August 2026 the Prime Minister announced that the subscription contracts regime under the Digital Markets, Competition and Consumers Act 2024 (DMCC) will come into force in January 2027, not Spring 2027 as previously indicated.

Subscription contracts are contracts with consumers that either auto-renew or have a free trial/reduced price period after which the contract renews onto a higher payment. The new regime will require traders to give consumers enhanced pre-contract information, renewal reminders, easier cancellation processes and a new 14-day cooling-off period when free trials or long-term subscriptions renew.

At the same time, it was announced that there will be a consultation this autumn on whether misleading pricing practices such as fake “was/now” prices (reference pricing), invented discounts and misleading recommended retail prices (RRPs) should be added to the DMCC's list of prohibited commercial practices. The aim is to make enforcement easier by treating such conduct as automatically unfair, rather than requiring regulators to prove on a case-by-case basis that practices are misleading to consumers.

Businesses dealing in subscription contracts should ensure that cancellation journeys are straightforward and that systems can deliver the required pre-contract information, renewal notices and cooling-off rights in time for the new regime coming into force. All businesses selling to consumers should review their pricing practices in preparation for potentially tighter rules. Businesses that rely on reference pricing, time-limited offers or discount claims may face increased scrutiny and may need to retain evidence demonstrating that advertised savings are genuine.

UK: PPN 026: revised approach to social value in central government procurement

On 5 August 2026 the Cabinet Office published PPN 026: The Social value model. This introduces a revised approach to social value in central government procurement, defined as “taking account of how a supplier will work for our communities to provide good British jobs, skills and opportunities in every postcode”.

The PPN applies to central government departments, executive agencies and non-departmental public bodies, for covered procurements with a total value of £1 million or more that are commenced under the Procurement Act 2023 on or after 1 January 2027.

In-scope organisations are required to incorporate relevant delivery outcomes and corresponding social value award criteria into procurements. The two outcomes are Good Jobs (with award criteria covering job creation, fair working conditions and fair pay) and Skills (with award criteria covering training, in-work progression and talent pipeline).

A mandatory minimum social value weighting is introduced: 10% for contracts between £1 million and £5 million and 20% for contracts of £5 million or more. Organisations must also monitor delivery of social value commitments through contractual mechanisms, with at least one social value KPI required for contracts worth £5 million or more.

Additional guidance will be published in autumn 2026.

Businesses bidding for central government contracts will need to demonstrate credible and measurable commitments to local employment, fair pay, skills development and workforce progression. Suppliers should review recruitment, training, apprenticeship, community engagement and workforce policies to ensure they can evidence tangible outcomes and deliver against contractual KPIs. For procurement teams, the PPN signals a stronger emphasis on using public procurement to drive economic growth, employment opportunities and skills development in local communities, making social value an increasingly important factor in bid competitiveness and contract performance.

EU Industrial Accelerator Act: market access meets industrial policy

The EU is conditioning access to certain strategic industrial sectors. The Industrial Accelerator Act (IAA), proposed by the Commission on 4 March 2026, introduces three sets of new rules. Its headline goal is to raise manufacturing’s share of EU GDP from 14.3% to 20% by 2035. The rules would affect how businesses invest, manufacture, and sell to the public sector in the EU.

First, certain non-EU investments in batteries, electric vehicles, solar panels, and critical raw materials would require prior approval if certain thresholds are met. Second, new "Made in EU" content requirements would apply to public procurement and public support schemes. Third, low-carbon criteria would apply to public tenders for energy-intensive products such as steel, cement and aluminium.

The IAA sits alongside three existing regimes affecting M&A in the EU: the FDI Screening Regulation, the Foreign Subsidies Regulation, and EU merger control. For non-EU investors, this creates a fourth layer of regulatory scrutiny. The Proposal is now before Parliament and Council. It is controversial and may change substantially during negotiations.

The IAA is structurally different from traditional FDI screening, which focuses on national security. It targets economic security and industrial independence. The question is not whether an investment poses a threat, but whether it delivers enough value to the EU. That makes it closer to a tool aiming to reduce supply-chain dependency than a broader investment-screening regime.

EU leaders have called for agreement by the end of 2026. In practice, formal adoption in mid to late 2027 is the more likely outcome. If adopted, the IAA would not take effect all at once. Member States would have one month from entry into force to designate Investment Authorities. The permitting provisions would follow a year later. For energy-intensive industries, the procurement rules apply only to tenders launched on or after 1 January 2029. That date holds whenever the IAA is adopted, so later adoption leaves less time to prepare.

For more information see: EU Industrial Accelerator Act: Market Access Meets Industrial Policy.

With thanks to Dr. Sandra Link, Marjolein de Backer, Dr. Martin Weitenberg, Adam Fisher, Joanna Kulewska, Daniel von Brevern and Michiel Coenraads

Global Sustainability & ESG Insights - July 2026

Global Sustainability & ESG Insights - July 2026: check out the latest edition of our monthly Global Sustainability & ESG Insights, providing you with a summary of the key developments from around the world.