Tech sector laws: One passes pre-election, another languishes in Lords

UK GDPR will have to wait until next government

Tech sector laws: One passes pre-election, another languishes in Lords

A law to regulate Big Tech has been rushed through the Parliament, but the UK’s GDPR is on hold.

Rishi Sunak's surprise decision to call a general election has upset progress on tech legislation working its way through the Commons.

One major bill has passed, while another has been defeated in the Lords and now cannot pass before Parliament is dissolved.

What's the rush?

The Prime Minister announced the UK's next general election on Wednesday this week, to take place on 4th July. Legally Parliament must be dissolved 25 working days before election day, so all business must be finished by 30th May.

We're now in what is called the "wash-up" period, where the final bills to become law are considered. Any unfinished business is lost at dissolution.

What's passed, and what's stuck?

Two major bills were close to passing before the election announcement: the Digital Markets, Competition and Consumers Bill (DMCC) and the Data Protection and Digital Information Bill (DPDI).

Other pieces of legislation affecting the tech sector, like the Artificial Intelligence (Regulation) Bill, were moving through Parliament, but none were in the final stages.

The DMCC, the UK version of the EU's Digital Markets Act, has passed through the Commons and Lords and is now only waiting for Royal Assent.

The Bill, soon to become an Act, will give the Digital Markets Unit (a branch of the Competition and Markets Authority) specific powers to identify large companies with substantial market influence, and fine them for anti-competitive practices.

Big Tech lobbied heavily against the DMCC while it was being debated in Parliament, but industry bodies like the Coalition for App Fairness (CAF) welcomed its passing.

CAF CEO Rick VanMeter said he was "thrilled" that the Bill had passed, calling it "another major step in a growing, global movement for fair digital markets."

DPDI grinds to a halt

On the other hand, the DPDI did not pass in the Lords, and will now be delayed until the next government is formed.

The DPDI is an attempt to translate the GDPR into UK law. Before the election announcement it was approaching the report (final) stage in the Lords, was basically unopposed and seemed destined to pass.

However, the Bill doesn't appear on upcoming House of Lords business for the wash-up period – indicating the government has dropped it.

The Bill was intended to make the GDPR more practicable and less burdensome in lower-risk situations. It clarifies some aspects of legitimate interest (e.g., tracking for marketing), and makes transferring personal data to third countries risk-based.

Unlike the GDPR, under DPDI organisations would have been able to refuse data subject access requests or charge fees to provide information. It also removed the requirement for businesses to hire a dedicated data protection officer.

If the next government is Conservative, the DPDI will probably be resurrected and pass quickly. However, if a Labour government takes power it's likely that the bill will see some significant changes, including the possibility of AI legislation.