A new UK tech regulator is to impose limits on the power of Facebook, Google and other tech giants in an attempt to inhibit misuse of their market dominance and to ensure equal opportunities for smaller competitors.
“There is growing consensus in the UK and abroad that the concentration of power among a small number of tech companies is curtailing growth of the sector, reducing innovation and having negative impacts on the people and businesses that rely on them,” Digital Secretary Oliver Dowden stated, adding that “It’s time to address that and unleash a new age of tech growth.”
The Competition and Markets Authority (CMA) will work to add a Digital Markets Unit to their organization, for formulating and enforcing a new code of practice related to limits for tech companies.
“Digital platforms like Google and Facebook make a significant contribution to our economy and play a massive role in our day-to-day lives – whether it’s helping us stay in touch with our loved ones, share creative content or access the latest news,” said business secretary, Alok Sharma.
“But the dominance of just a few big tech companies is leading to less innovation, higher advertising prices and less choice and control for consumers. Our new, pro-competition regime for digital markets will ensure consumers have choice, and mean smaller firms aren’t pushed out.” he reiterated.
The new rules are meant to clarify the terms of acceptable behavior for powerful tech companies, following the CMA’s investigation into Facebook and Google’s market dominance.
CMA’s chief executive, Andrea Coscelli believes that a new pro-competition regulatory regime will ensure the protection of businesses and consumers.
“Only through a new pro-competition regulatory regime can we tackle the market power of tech giants like Facebook and Google and ensure that businesses and consumers are protected. We will soon be providing advice to government on how this new regime should work, as requested earlier this year, and stand ready to support the setup of the Digital Markets Unit.” she said.
