As new regulations are announced, tech giants express their concern. The new Digital Markets Unit has the power to fine companies billions of pounds if they do not follow a strict code of conduct. The Competition and Markets Authority proposed these new regulations.
The CMA’s goal is to offer regulators the power to give costly fines to ensure a proper code of conduct is followed. This is about creating a competitive market with a focus on trustworthiness, transparency, and fair trading. This approach will benefit smaller tech companies, media organizations, and the consumer. However, it is unpopular with the biggest technology companies.
The founder and CEO of Facebook, Mark Zuckerberg, made a move against the UK Government’s anti-tech stance. These new regulations target Facebook and Zuckerberg threatened to cease the company’s investments in the UK. At the time of releasing the new the Facebook stock which can be traded on Plus500 was down 8.5%.
Which Are The New Proposals From CMA?
CMA works closely with leading regulators, including Ofcom and DMU. It aims to grant regulators the power to block, reverse, or suspend significant decisions of the tech giant. New proposals focus on the anti-competitive impact on the market, including acquisitions and mergers.
These proposals will affect companies that earn over £1 billion in UK revenue. Since Facebook holds 50% of the UK’s digital advertising space and Google has over 90% of the UK’s search revenues, it is easy to notice that these tech regulations are meant for closer supervision.
It is believed that new regulations will diminish the negative impact on digital innovation. It will offer consumers more choice and encourage fairness for smaller businesses.
An important point in the new regulation is data usage. The code will have digital advertisers follow a transparent policy. They will have to clearly state how they use data and offer the consumer more choices over personalized settings. This proposal will limit the monetization offered for content. It will help online journalism in its struggle to remain relevant and accurate.
These new proposals from the CMA could transform the digital environment all over the UK. It will have a positive impact on other industries, including media and publishing. New regulations might offer transparency and limit tech giants’ unfair approaches.