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Crackdown on big tech

ended 25. April 2023

Overnight, it was officially announced that a regulator will oversee the “excessive dominance” of big technology platforms in the UK. It will have the power to fine them up to 10% of their global turnover under new legislation. The Digital Markets Unit (DMU), which was launched two years ago within the Competition and Markets Authority (CMA), will be given new powers to ensure that consumers and businesses are not unfairly disadvantaged by the major tech players. Firms deemed to have “strategic market status” in key digital services could be forced to adhere to strict rules on how they operate or face heavy fines under the draft Digital Markets, Competition and Consumers Bill. The DMU will be able to carry out targeted interventions to allow start-ups or smaller firms to compete. Any thoughts on this, send them across ASAP and we will send them to the media this morning.

 

3 responses from the Newspage community

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Nicola Firth
Founder and CEO at Knowledge Bank
The tighter controls announced by the regulator follow a period of mass lay-offs caused by challenging macroeconomic conditions for big tech companies. The winners here will be the tech start-ups who now have access to a wider pool of talent, striving to create data-driven decisions to stand out from traditional service providers. Start-ups are more agile and can embrace the significant advancement in AI in recent times by identifying new market opportunities to scale their operations quickly.
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Kim Leary
Chair at Birmingham Tech CIC
Holding big tech firms accountable for their actions will help promote a more level playing field and encourage new players to enter the market. It is another step towards encouraging innovation and diversity in the digital marketplace. However, excessive regulation could stifle innovation and limit the growth of companies that have contributed to significant technological advancements. Nonetheless, it remains to be seen how effective this crackdown will be in promoting fair competition and diversity in the market.
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Ben Foster
CEO at The SEO Works
Something needed to happen in this space, with big tech now controlling so much data about individuals. However, the reality is that most people either aren't aware of or don't really care about the data that is held about them. It remains to be seen how effective a law to fine up to 10% of global turnover actually is and if it ever gets enforced, and in what scenario this could happen. Often attempts by governments to enforce regulation are clunky and can actually have a detrimental effect on business.