April 26, 2023
The U.K.’s Digital Markets Unit (DMU) will be given more authority under proposed legislation that could fine Big Tech companies up to 10% of their revenue for anti-competitive behavior under the Digital Markets, Competition, and Consumers (DMCC) bill.
The measure would authorize the DMU, which is part of the Competition and Markets Authority (CMA), to focus on “companies that possess significant and entrenched market power in at least one digital activity” and maintain a strategic position. Furthermore, the DMU will designate certain companies as having Strategic Market Status (SMS), putting them “subject to the new regime.”
The proposed regulation would only apply to enterprises with a global revenue of more than £25 billion or a U.K. sale of more than £1 billion, meaning that smaller businesses would be exempt. The DMU would also have the right to order firms to provide their data to rival search engines or to improve the openness of their app store or marketplace review procedures.
If the measure is passed, it will require significant technology corporations to submit proof of how they conform to competition law principles. Furthermore, senior executives would be held “individually accountable for ensuring their company satisfies the DMU’s directives.”
The sources for this piece include an article in TheRegister.
