- Digital Markets Unit (DMU) will act as an independent regulator
- DMU collaborates closely with other important agencies
- DMU will have to shape the conduct and behaviour of companies with Strategic Market Status
Secretary of State for Digital, Culture, Media and Sport (DCMS) has presented the responses to the public consultation on the new pro-competition framework for digital markets to the UK Parliament. Response were presented jointly with Secretary of State for Business, Energy and Industrial Strategy
According to the Competition and Markets Authority, Google and Facebook made £2.4 billion in excess profits in the UK in 2018, affecting consumers through higher prices. The Competition and Marketplaces Authority established a dedicated Digital Markets Unit (DMU) to promote competition in digital markets for the benefit of consumers.
DMU will function as an independent regulatory organisation. DMU collaborates closely with other important agencies to ensure that regulatory processes are consistent and efficient. The Financial Conduct Authority, Ofcom, the Information Commissioner’s Office, the Bank of England, and the Prudential Regulation Authority will all be consulted by DMU, under statutory obligation.
Firms with significant and entrenched market power in at least one digital activity, giving them a strategic position, will be given Strategic Market Status. DMU will have to shape the conduct and behaviour of companies with Strategic Market Status, proactively.
In comparison to analogous transactions, firms with Strategic Market Status will be required to not impose discriminatory terms, conditions, or policies to certain users or categories of users, and to give clear, relevant, accurate, and accessible information to users.
The new Digital Markets Unit (DMU) will have the authority to regulate the behaviour of the companies that engage in predatory practices and the DMU will have the authority to fine companies up to 10% of their global revenue if they fail to comply.
UK Govt will be boosting competition in digital markets as a vital tool for realising vision for the UK economy. Economic growth can be more impressive if UK can ensure that there is vibrant competition in all digital markets.
Following Brexit, the United Kingdom is establishing its own regulations. The measure, however, is in line with broader European Union efforts to regulate Big Tech. The European Union and the United States have agreed to restart transatlantic data flows in principle. The Digital Market Act will have a significant impact on the future of European Internet players. The DMA will establish guidelines for gatekeepers’ businesses.
The UK government move will increase competition in digital marketplaces as a critical tool for realising the UK economy’s ambition. If the UK can ensure that there is healthy competition in all digital markets, economic development will be even more amazing.
Staff Galactik Views