Britain to take on big tech with new legal powers

Britain's new bill is a legal framework fit for the digital age, protecting consumers and ensuring digital markets work for the British economy

On Tuesday, Britain said that it would propose a new rule to limit the ability of large tech firms like Google, Facebook, and Amazon to hinder competition in digital markets. The administration said that the legislation will improve consumer protection by making it simpler to cancel internet subscriptions and to deal with bogus reviews.

With the knowledge to oversee emerging markets like social media, Britain's antitrust agency, the Competition and Markets Authority (CMA), established a dedicated Digital Markets Unit two years ago. However, it hasn't had the legal "teeth" to support its mandate.

The CMA will be allowed to modify regulations for tech companies that satisfy its threshold under the proposed British law to prevent them from unjustly favouring larger corporations over smaller businesses and consumers. For instance, the government suggested that they be instructed to give customers more choice and openness. It said that if they broke the guidelines, they might be fined up to 10% of their worldwide turnover.

CMA chief executive Sarah Cardell said the bill had the potential to be a "watershed moment" in protecting consumers and ensuring digital markets worked for the British economy. She added, "Digital markets offer huge benefits, but only if competition enables businesses of all shapes and sizes the opportunity to succeed. This bill is a legal framework fit for the digital age."