The UK is reportedly all set to issue Google, Facebook, and other large tech firms, a set of customized rules that are tailored to each company and penalize them if they fail to adhere.
The custom rules are part of the plan devised by the Competition and Markets Authority, that would actively shape the behavior of the firms. The CMA further plans to establish a Digital Markets Unit within itself in order to govern compliance and draw up the rules.
The CMA wants the novel unit to be able to fine the tech giants nearly 10% of their worldwide turnover, if they do not adhere to the rules with the remedies battling anti-competitive behavior. Based on the new full year results, for Google, that could mean a fine of around $16 billion (£12 billion) and $7 billion for Facebook.
Last week, CMA unveiled how the new plan is designed to govern the behavior of the tech giants, who presently dominate the online market and provide customers control regarding data usage.
As per the newest announcement, there would be nearly 3 pillars to the new rule. Firstly, a novel legally binding code of conduct, which will detail on how to treat their users as well as how they do business with other firms.
Secondly, interventions to support competition, with one proposal being to impose interoperability requirements on the tech firms. For instance, letting a proprietary app to operate on competitor’s hardware or operating system.
Lastly, enhanced rules of merger, which would enable the authority to block transactions and takeovers until those who are involved could persuade the CMA that the users won’t be harmed at a result.
Andrea Coscelli, chief executive, CMA, stated that the UK needs more novel powers as well as approach. It needs a more advanced and updated regulatory regime that could let innovation to succeed, while taking fast action in order to prevent issues.
Meanwhile, other tech giants that are expected to be covered include Airbnb, Netflix, Microsoft, and Apple.
Source credit: https://www.bbc.com/news/technology-55230704