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UK to tighten competition regulations for Google and other tech giants in 2021

28 November 2020

A Digital Markets Unit will be established within the Competition and Markets Authority

The UK Competition and Markets Authority (CMA) announced in a media release Friday that in 2021 a Digital Markets Unit will be established within the CMA "to tackle the market power of tech giants like Google and Facebook" and to ensure that "rival businesses can compete on a level playing field and publishers do not find their revenues unduly squeezed."

CMA Chief Executive Andrea Coscelli said:

"Only through a new pro-competition regulatory regime can we tackle the market power of tech giants like Facebook and Google and ensure that businesses and consumers are protected."

And in a separate statement UK Business Secretary Alok Sharma said:

“Digital platforms like Google and Facebook make a significant contribution to our economy and play a massive role in our day-to-day lives...But the dominance of just a few big tech companies is leading to less innovation, higher advertising prices and less choice and control for consumers. Our new, pro-competition regime for digital markets will ensure consumers have choice, and mean smaller firms aren’t pushed out.”

The European Union is also planning to tighten up on competition regulations soon, via its forthcoming Digital Services Act and Digital Markets Act rules. But because of Brexit - due to be finalized at the end of December - the UK has chosen to take unilateral action now.

The digital sector contributes around £150 billion to the UK economy annually.

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External Article: https://www.gov.uk/government/news/cma-welcomes-government-response-to-digital-advertising-study

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