UK government considers granting authority to 'fine up to 10% of sales to giant IT companies'
In April 2021, the UK Government competes and markets a new division called the Digital Market Unit (DMU) to support domestic companies in the growing technology sector and protect consumers from the power of giant tech companies.
Government unveils proposals to increase competition in UK digital economy --GOV.UK
https://www.gov.uk/government/news/government-unveils-proposals-to-increase-competition-in-uk-digital-economy
UK's Digital Markets Unit – the Big Tech watchdog – remains toothless for now but statutory powers due this year • The Register
https://www.theregister.com/2021/07/20/uk_dmu_proposals/
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Founded in April as a new division within CMA, DMU is working with companies to introduce more competition in the digital technology division, further transforming and fairing UK companies such as startups, news publishers and advertisers. The purpose is to bring conditions. Maintaining fair competition gives consumers better choice and control, making it easier to access other competing services.
Although the DMU was not legally authorized at the time of writing, the UK Government has announced a new proposal for the DMU. According to the announcement, DMU will be empowered to designate giant IT companies with substantial and well-established market power (strategic market status) and to comply with new rules regarding practices with competitors and customers. .. Companies with strategic market status are required not to force their customers to use the default services, or to prevent third-party companies from doing business with other companies.
In addition, DMUs are given strong research and enforcement power to force companies with strategic market status to follow the rules. In addition to having the authority to suspend, block, and cancel rule-violating acts by companies, DMU can also issue orders to perform specific actions so that it complies with the rules. In addition, the company that commits the most serious violations can be fined up to 10% of sales. The British Government aims to legally empower the DMU as soon as Congress time allows.
Oliver Dowden, UK's Minister of Digital, Culture, Media and Sports, said, 'The UK tech scene is thriving, but we have British companies on an equal footing with Big Tech and the people. We need to ensure that we get the best service at the right price. ”“ Therefore, we need to defend the competition and grow, including fines for the newly established DMU to make the largest tech companies act according to the rules. It empowers us to drive innovation. '
'Technology helps us reach out to our loved ones, share content, and access the latest news, and our lives,' said Kwasi Kwartengu, Department for Business, Energy and Industrial Strategy. ”“ No one wants to see an unquestionable monopoly. Our sensible reforms protect consumers, support innovative ideas and level the business arena. I will help you. '
The UK government is also considering empowering the CMA to investigate and intervene in harmful mergers involving market-powered companies.
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