Digital Markets, Competition and Consumers Bill: a Step Closer to Regulating Big Tech in the UK

Following the announcement of the Digital Markets, Competition and Consumers Bill during the Queen’s Speech in March 2022, the Bill has been presented to the House of Commons. The Bill comes after years of the British government’s efforts to address the power of Big Tech and the introduction of the Digital Markets Unit (DMU) in 2021, under the Competition and Markets Authority (CMA). If the Bill is passed, the Unit would be placed on a statutory footing and given new powers to target Big Tech specifically.

 

The contents of the Bill

The Bill aims to regulate the market power of digital service providers with ‘strategic market status’. It intends to provide the DMU with new powers to regulate competition based on a range of ‘conduct requirements’. Lawyers at Taylor Wessing suggest these may include the provision of ‘greater choice and transparency to customers, particularly about their review systems’ as well as sharing data with their consumers or competitors.

 

Beyond this, the Bill wants to reform consumer protection against unfair commercial practices. This includes targeting the practice of commissioning, creating and posting fake online reviews, without taking reasonable steps to ensure that they are genuine.

 

The DMU, empowered by the new bill, is set to target a small number of tech companies generating at least £25bn in global turnover, or £1bn in the UK. This includes the Big Five: Amazon, Apple, Google, Meta, and Microsoft. To enforce the Bill, the DMU could fine businesses up to 10% of their annual global turnover for non-compliance, and hold senior managers personally liable. In relation to unfair practices, it aims to confer new rights on consumers such as the right of redress alongside new offences and sanctions.

 

Next steps

The Bill is at the start of the legislative process. It was introduced to the House of Commons for its first reading on the 25th of April 2023 and it is to likely suffer amendments before being made into law.

 

The Bill is being debated alongside the implementation of similar EU legislation. One can expect to see more legislation and proposals surrounding Big Tech going forward, especially when considering their enthusiasm regarding Artificial Intelligence, raising further legal issues