Britain’s competition watchdog stated that tailored rules should be used to regulate tech giants Google, Facebook, and others on Tuesday, December 8, reported Reuters.
The Competition and Markets Authority (CMA) stated that a legally binding code of conduct backed up by penalties that could extend to fines of up to 10% of turnover, as well as enhanced merger rules, should be set up in legislation.
The code will be enforced by a new Digital Markets Unit announced last month.
CMA Chief Executive Andrea Coscelli said consumers and businesses who relied on Google and Facebook should be treated fairly, with a level playing field for competitors.
“For that to happen, the UK needs new powers and a new approach,” he said on Tuesday. “In short, we need a modern regulatory regime that can enable innovation to thrive, while taking swift action to prevent problems.”
The CMA’s proposals are based on principles rather than rules or outcomes, tailored to different technologies, reported Reuters.
The proposed rules focus on companies’ dominance in individual sectors, such as Google and Facebook in digital advertising. The two companies accounted for around 80% of £14 billion (US$18.7 billion) spent in 2019, the CMA stated.
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