On Tuesday, Britain said that it would propose a new rule to limit the ability of large tech firms like Google, Facebook, and Amazon to hinder competition in digital markets.
The administration said that the legislation will improve consumer protection by making it simpler to cancel internet subscriptions and to deal with bogus reviews.
With the knowledge to oversee emerging markets like social media, Britain’s antitrust agency, the Competition and Markets Authority (CMA), established a dedicated Digital Markets Unit two years ago.
However, it hasn’t had the legal “teeth” to support its mandate.
Once the law is approved by the legislature, it will make up for it by granting the DMU new authority over tech firms with a global turnover of more than 25 billion pounds ($31.2 billion) or a British turnover of more than 1 billion pounds.
Despite significant opposition from Google, Apple, and others, the European Union introduced its own rule last year to address the dominance of big companies.
In accordance with the proposed British law, the CMA will be empowered to adapt regulations for tech companies that reach its criteria to prevent them from unjustly favoring larger enterprises over smaller ones and customers.
The government suggested that they might be instructed to give customers more choice and openness, for instance.
It said they may be punished up to 10% of their global turnover if they broke the guidelines.
The measure could be a “watershed moment” in consumer protection and ensuring that digital marketplaces function for the British economy, according to CMA CEO Sarah Cardell.
Digital markets can be very advantageous, but only if there is enough competition to provide companies of all sizes the chance to prosper, according to the speaker. This legislation provides a legal framework appropriate for the digital age.
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