UK passes Digital Markets, Competition and Consumers Bill
The UK Parliament has passed the Digital Markets, Competition and Consumers Bill which will enable tech companies such as Google, Facebook, Apple and others to be given “strategic market status” and be regulated by the Digital Markets Unit (a division of the Competition and Markets Authority).
Source: © 123rf 123rf The UK Parliament has passed the Digital Markets, Competition and Consumers Bill
The Bill marks the most important changes to UK competition law and consumer law in years. It also paves the way for Australia-style payments to news publishers from tech giants.
The DMU could compel tech companies to pay for the news content which appears on their platforms and will work to establish codes which ensure companies serve the best interests of consumers.
It will have the power to fine tech companies 10% of annual turnover if they abuse their market positions.
Changing tech giants’ behaviour
The DMU will also be tasked with ensuring the tech giants:
- Trade on fair and reasonable terms.
- Have effective processes for handling complaints and disputes with users or potential users.
- Provide clear, relevant, accurate and accessible information about the relevant digital activity to users or potential users.
- Give explanations, and a reasonable period of notice, to users or potential users of the relevant digital activity, before making changes about the relevant digital activity where those changes are likely to have a material impact on the users or potential users.
- Present to users or potential users any options or default settings about the relevant digital activity in a way that allows those users or potential users to make informed and effective decisions in their own best interests about those options or settings. Google, for instance, could be required to give notice to publishers of significant changes to its search algorithm.
A tech platform that falls under the bill would also be prevented from “applying discriminatory terms, conditions or policies to certain users” and from using its position “to treat its products more favourably than those of other undertakings”.
Bill welcomed by UK publisher organisations
The News Media Association, which represents UK national and local newspaper publishers, welcomed the news that the bill has been passed.
“The passage of the Digital Markets, Competition and Consumers Bill marks a very important milestone in addressing market failure in the digital economy, and ultimately delivering a level playing field between publishers and platforms,” says NMA chief executive Owen Meredith.
“Once Royal Assent is granted, the Competition and Markets Authority will have the tools it needs to make a real difference.
“I hope they move swiftly to make use of those powers to deliver for consumers and businesses. We look forward to working with the CMA as they move ahead with implementation to unleash the full power of the UK’s digital economy.
"The CMA must prioritise designation of firms and services where harms have the greatest societal impact, and the new regime must empower news publishers to reap fair rewards for their investment in the news – helping to secure a sustainable future for trusted independent UK journalism for many years to come.”
Read more about this story in the Press Gazette in an article written by Dominic Ponsford.