The U.K. Digital Markets Division will not be able to set rules for leading internet companies; For example, Google and Meta. It can not impose fines for violating the rules. The new government legislative program may not include a bill for the digital markets department based on the body of competition and markets.
This decision is a severe blow to global efforts to limit the dominance of Internet companies, including Meta and Google. Also, this is in stark contrast to E.U. policies, which are moving toward tightening control over technology giants to prevent their use and their dominance to destroy small firms and make consumers worse.
The government announced plans to create a digital markets unit in 2020. A year after, the CMA launched an investigation into the impact of U.S. technology platforms. As well as how they collected and used personal data and customer interests. In fact, they expect that the DMU would empower to develop a code of conduct for technology companies. Also, impose fines of up to 10 percent of annual turnover. Last year, established in “shadow form,” currently employs about 60 staff. However, the firm currently has no authority beyond the existing capabilities of the CMA.
U.K. Strategy and New Technology
In 2019, Meta and Google accounted for almost 80 percent of the U.K.’s digital advertising spending, About 14 14 billion, which helped with their large user databases and deep pockets.
The government decision came after it dropped a bill from the Queen’s speech on the long-delayed reform of auditing and corporate governance; After several corporate scandals, Which is why Tory officials say Boris Johnson opposes state intervention in the economy.
According to experts, if the legislation that strengthens the technical regulator is not in the Queen’s words, it will “damage the credibility of the entire enterprise.” “It will be a blow to the U.K.’s ability to regulate these sectors.”
The initial plans of the U.K. Technical Regulator were welcomed by most sectors, Including media companies that have benefited from new rules between news publishers and Internet groups such as Meta and Google. It is expected that the new U.K. regime will affect technology companies; Change the behavior of the most influential tech firms. It will also protect the businesses and consumers that depend on them in the economy.