U.K. to Take Action Against Big Tech Giants the new Digital Markets Unit (DMU) uses hefty penalties to crack down on “predatory behavior.”
To combat what it calls the “predatory activities” of large technology companies, the United Kingdom plans to establish a new Digital Markets Unit (DMU), which will provide significant regulatory hurdles for the Google division of Alphabet Inc. (GOOGL, GOOG).
If they violate the rules, Alphabet and other industry leaders could be expose to fines totaling tens of billions of dollars. The maximum fine is ten percent of global revenues, with additional penalties of five percent of daily global revenues for each day that an offense continues.
The DMU, based in the Department for Digital, Culture, Media, and Sport (DCMS), will foster more competition among digital companies and enforce regulations to provide consumers with greater discretion over their personal information. It was also announce by the British government that “Senior management would risk civil fines if their businesses fail to interact adequately with demands for information.”
The planned new step against big tech in the U.K. follows the E.U. rule known as the Digital Markets Act (DMA), which passed a significant adoption barrier on March 24, 2022.
CONCLUSIONS AND RECOMMENDATIONS:
To rein in obnoxious tech giants, the United Kingdom is establishing a new agency called the Digital Markets Units (DMU).
There has been no progress make in introducing the necessary legislation.
The penalties for breaking the rules might cost a big behemoth like Alphabet tens of billions of dollars.
Google’s capacity to provide highly specific adverts to individual users and avoid paying for material produce by news outlets may be constrain by the DMU and upcoming regulations.
Overview of the New British Regulations and Their Justification
The U.K. government has said that the appropriate legislation would be present “in due time,” but as of May 5, 2022, it was still unknown when the new laws and the DMU would go into full effect.
The government wants to “level the playing field” in the technology industry, according to Chris Philp, a member of parliament.
And the Parliamentary Under Secretary of State at the Department for Digital, Culture, Media, and Sport (DCMS). 3 Some American tech giants have been accuse of abusing their market dominance.
Meaning for Google:
Philp said that monopoly power within a few computer companies was inhibiting new ideas and cutting down on competition.
The DMU aims to offer individuals a greater say over how digital companies utilize their information for targeted, tailored advertising. The goal is to make it simpler for users to migrate between several social networking platforms.
And mobile operating systems (such as iOS and Android) without worrying about losing any of their messages or contacts.
The U.K. government has said it would investigate Google’s search engine, now the default for items sold by Apple Inc. (AAPL). The DMU will also resolve disputes about news publishers’ compensation for their material. The U.K. government has said that these changes may provide national and regional newspapers more “bargaining leverage.”
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