UK to Curb Big Tech
FILE PHOTO: A 3D printed Facebook's new rebrand logo Meta is seen in front of displayed Google logo in this illustration taken on November 2, 2021. REUTERS/Dado Ruvic/Illustration On Tuesday, the UK government revealed its intention to create new legislation that would limit the ability of big tech like Amazon, Facebook, and Google to stifle competition within the digital marketplace.
The UK government’s proposed law aims to not only enhance consumer protection but also regulate big tech companies to prevent them from suppressing competition. The Competition and Markets Authority (CMA) has struggled to regulate new markets like social media because it lacks legal authority. However, the creation of the Digital Markets Unit (DMU) will give the CMA new powers to impose rules on qualifying tech companies.
These regulations will require tech firms with a global turnover exceeding £25 billion or a British turnover exceeding £1 billion to provide greater choice and transparency to customers, preventing them from unfairly disadvantaging smaller businesses and consumers. In case of breach of regulations, big tech companies may face a fine of up to 10 percent of their global turnover. The CMA’s CEO, Sarah Cardell, believes that this legislation could mark a significant turning point in consumer protection and help ensure that digital markets work effectively for the UK economy.
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