UK to set up new watchdog for police tech giants
Britain plans to create a new watchdog to control big tech companies, including Google and Facebook, to counter their market dominance and prevent them from exploiting consumers and small businesses.
The UK government said on Friday it would set up a digital markets unit next year to enforce a new code of conduct governing the behavior of tech giants that dominate the online advertising market.
The Digital Markets Unit, slated to launch in April, will oversee a new regulatory regime for tech companies aimed at further stimulating competition.
These measures were announced in the conclusions of former Obama economic adviser Jason Furman, charged by the British Treasury to conduct a study on the digital economy.
It’s part of a larger push by the governments of the United States and Europe to limit the power of big tech companies amid concerns about their outsized influence. The European Union this week unveiled proposals to wrest control of data from tech companies, and is expected to release details of a sweeping digital regulatory overhaul to stop online gatekeepers from stifling competition next month. . In the United States, authorities are pursuing antitrust action against Google, and lawmakers have offered to dismantle big tech companies.
UK Digital Secretary Oliver Dowden has said online platforms bring benefits to society, but there is a growing consensus in the UK and abroad that the concentration of power between a small Many tech companies hold back industry growth, reduce innovation, and negatively impact the people and businesses that rely on them. “
The government has yet to consult on the functioning of the digital markets unit and approve legislation in this regard.
According to the new code, tech companies should be more transparent about how they use consumer data. They would have to let users choose whether or not to receive personalized advertising and would not be allowed to make it harder for customers to use competing platforms.
The Digital Markets Unit could have the power to suspend, block or reverse any decisions made by big tech companies and order them to take certain actions to comply with the code. If companies don’t comply, the watchdog could fine them, although the maximum penalty has yet to be stated.
Google said competition in the ad technology industry is increasing and noted that this gives users tools to manage and control their data.
We support an approach that benefits people, businesses and society and we look forward to working constructively with the Digital Markets Unit so that everyone can get the most out of the Internet, said Ronan Harris, company vice president for UK and Ireland.
Facebook declined to comment.
