Internet watchdog designed to rein in Big Tech will ‘unleash’ the industry and boost Britain’s economy, competition chief says
- Competition and Markets Authority exec praises Digital Markets Unit watchdog
- The DMU looks to establish a regime favouring competition in digital markets
An internet watchdog designed to rein in Big Tech will ‘unleash’ the industry and boost Britain’s economy, the UK’s competition chief has told peers.
Sarah Cardell, chief executive of the Competition and Markets Authority, yesterday moved to scotch claims the Digital Markets Unit (DMU) would stifle investment and innovation.
Her comments come amid lobbying from the handful of tech giants likely to be affected that the legislation risks overregulation and will make the UK a ‘hostile’ place to invest.
The DMU aims to establish a pro-competition regime for digital markets that have become dominated by a small number of powerful firms, such as Google and Facebook.
Sarah Cardell, chief executive of the Competition and Markets Authority, yesterday moved to scotch claims the Digital Markets Unit (DMU) would stifle investment and innovation.
Under the Digital Markets, Competition and Consumer Bill, it will be handed powers to force firms to significantly alter their business models and fine them up to ten per cent of their turnover.
READ MORE: Britons will be worse off if the tech giants are given more powers by regulators, expert warns
Lobbying efforts against the bill have ramped up in recent months however, including from firms urging ministers to give them more power to challenge any decision made by the regulator.
Labour has called on the Government not to ‘bow down’ to pressure, in order ‘to protect democracy’ and create a balance.
Giving evidence to the House of Lords digital and communications committee, which is scrutinising the bill, Ms Cardell dismissed the idea the watchdog would have a negative economic impact.
Last year, a report by think tank the Institute for Economic Affairs raised concerns that the bill could hamper innovation.
It warned the DMU’s powers could force companies to ask for permission before launching products or to modify features in ways that undermine user privacy.
Ms Cardell told peers: ‘Actually, for me, it’s very, very clear that if we have a regime that supports competition, then it supports investment, it supports innovation, and it supports growth – and those all go together.
‘But it’s very important we do this in a targeted way, not a heavy-handed, overly interventionist approach.’
The Digital Markets, Competition and Consumers Bill is set to empower the new digital watchdog to mediate on negotiations between publishers and platforms, including Facebook and Google, over fair payment for news content
On Monday, Labour’s shadow technology minister, Alex Davies-Jones, urged the Government not to ‘bow down to this pressure, in order to protect democracy, to create that fit competition and to create balance that is so desperately needed within the regime’.
Speaking at an event sponsored by the All-Party Parliamentary Group for media, she said: ‘Just last week we saw that Google had taken the decision to switch off all of news in Canada following the passing of a law that would compel big tech to negotiate for the value of news content.’
Ms Davies-Jones added: ‘The Government cannot give in to similar threats here in the UK.’
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