UK joins EU in Big Tech regulation plans
The threat of billion-dollar fines aimed at Big Tech is intended to promote competition and innovation from smaller players
The UK Government has set out plans to bolster the Digital Markets Unit (DMU), part of the Competition and Markets Authority (CMA), with more powers to regulate and fine tech companies.
The DMU's remit echoes the power of new regulations in the EU, which recently agreed the Digital Markets Act and Digital Services Act - both part of the bloc's largest revamp of laws controlling tech giants in more than two decades.
Big Tech firms like Google and Meta that breach rules designed to protect consumers and businesses will face serious penalties - up to 10% of their global annual turnover.
In addition, the Department for Culture, Media and Sport (DCMS) said the DMU could also level additional penalties: up to 5% of firms' daily turnover for every day an offence continues.
That could quickly add up to billions of dollars for companies like Amazon.`
Individuals could also be liable for rule-breaking, with the Government adding, 'Senior managers will face civil penalties if their firms fail to engage properly with requests for information'.
New rules will include the need for businesses to inform businesses of any significant changes that affect them, like a tweak to Google's search algorithm. The Unit will also have the power to resolve disputes between tech firms and news providers, and will seek to give people more control over their personal data; for example, making it easier to move between operators like Android and iOS, or to opt out of seeing targeted adverts.
Regulators will also look at the dominance of some firms' products, like Google Search, and the ability for tech firms to easily acquire small companies.
Big Tech is often criticised for its propensity to simply buy competitors before they reach a threatening size. Under new rules, firms like Apple and Google would have 'strategic market status', meaning they will have to report takeover proposals to the CMA for potential investigation.
However, the legislation to support these powers doesn't exist yet. The DCMS says ministers will introduce it 'in due course'.
That is counter to news earlier this week that claimed the DMU would not be given a legal footing, and would not be mentioned in the Queen's Speech on the 10th May.
Andrea Coscelli, CEO of the CMA, said, "The CMA welcomes these proposals and we're pleased that the Government has taken forward a number of our recommendations that will allow the DMU to oversee an effective and robust digital markets regime in the UK."