UK To Create New Digital Markets Unit To Tackle Big Tech

The UK government is setting up a watchdog to “oversee a pro-competition regime for platforms including those funded by digital advertising, such as Google and Facebook”. A dedicated Digital Markets Unit (DMU), under the wing of the Competition and Markets Authority (CMA) will work closely with Ofcom and the Information Commissioner’s Office (ICO) to introduce and enforce the new code.

The Department for Digital, Culture, Media and Sport said it plans to create a Digital Markets Unit (DMU) to enforce “a new code to govern the behavior of platforms that currently dominate the market, such as Google and Facebook.”

The code is designed to ensure that consumers, small businesses, and news publishers aren’t disadvantaged by actions taken by tech giants, the government said.

Under the new code, some of the world’s biggest tech companies may have to be more transparent about the services they provide and how they use consumers’ data. They may also be forced to give consumers a choice over whether to receive personalized advertising, and they won’t be able to place restrictions on customers that make it difficult for them to use rival platforms. 

The DMU, which will be part of the Competition and Markets Authority (CMA), will start work in April 2021.