Google, Facebook, Apple, and other tech giants are expected to face more scrutiny in the UK as the new watchdog launched Wednesday.
The new Digital Market Unit (DMU), announced last November to give Britain independent regulatory authority after Brexit, aims to curb Big Tech’s dominance and promote competition. It is a dedicated unit in CMA).
From Wednesday, the DMU will run in a “non-statutory form of” shadow “” until it is fully authorized by law. Press release From the British government.
Will Hater, who was a senior director at CMA before joining the Cabinet Office, will become interim head of the DMU early next month.
According to the government, DMU will work with the CMA executive team to take action against Google and Apple and work on existing proceedings, including scrutinizing mergers involving Facebook and eBay.
The government also said it plans to put together “necessary evidence, knowledge and expertise” in the first year so that it can be prepared as soon as possible after doing everything in its power.
In a statement, digital secretary Oliver Dowden said the launch was “a major milestone in building the world’s most competitive online market, centered on consumers, entrepreneurs and content publishers.” Said that.
Dauden asks DMU to begin exploring practical ways to manage the relationship between digital platforms and small businesses that rely on digital platforms for advertising and reach, and between platforms and content providers. I requested.
“This paves the way for new digital services and lower prices, gives consumers more choice and control over their data, and supports the news industry, which is critical to freedom of expression and democratic value. “I will.”
Kwasi Kwaten Business Secretary welcomed this step and said, “It helps to curb the dominance of tech giants, unleash a wave of innovation across the market and keep small businesses from being pushed out.”
Andrea Coscelli, CMA’s CEO, said DMU will be the “world’s leading expertise hub” in the digital market.
“We are confident that we will play an important role in supporting the prosperity of innovation and ensuring better results for our customers,” he said.
In February, Coscelli said Big Tech’s monopoly wasn’t seen as a potential issue 10 years ago, as competition was considered “one-click”.
“What we have learned is that in some areas, big tech companies have” very strong network effects, very strong benefits to scale, and the vast amount of historically collected information. ” Is to have.
He said more intervention is needed to level the competition to give new companies room for growth.