UK Plans Increased Big Tech Oversight, But Is Vague On When (Or If) Enforcement Begins

The U.K. government is planning to launch a new regulatory agency that oversees major tech companies, but the launch and dimensions of this agency remain unclear.

What Happened: The BBC reported that the new Digital Markets Unit (DMU) would have the authority to address "predatory practices" of tech leaders such as Meta Platforms Inc FB, Apple Inc. AAPL and Alphabet’s GOOGGOOGL Google and impose fines of up to 10% of their global turnover if it is determined they ran afoul of the agency’s rules.

The Department for Digital, Culture, Media and Sport (DCMS) said additional penalties could be levied if the companies refuse to adhere to the rules, with fines as high as 5% of daily global turnover for each day the companies are out of compliance

Chris Philp, the Parliamentary Under-Secretary of State at the DCMS, stated the government was trying to "level the playing field" in a sector where a handful of American companies have been the market leaders.

"The dominance of a few tech giants is crowding out competition and stifling innovation," he said.

See Also: Elon Musk Invited Before UK Parliament To Discuss Twitter Takeover

What Happens Next: The U.K. government has been vague on when the DMU would go live.

The Financial Times reported Prime Minister Boris Johnson was not enthusiastic about the powers being proposed for the new agency. The government’s legislative agenda for the next 12 months, which will be detailed in the Queen’s Speech to Parliament on May 10, is not expected to include a provision that defines statutory powers within the new agency, which has already been set up with a 60-person staff but has no enforcement authority.

Julian Knight, a Conservative Member of Parliament and chairman of the House of Commons Digital, Culture, Media and Sport Select Committee, has warned the omission of enforcement powers for the new agency from the Queen’s Speech would “damage the credibility of the whole enterprise”.

“It would be a hammer blow to the capability of the U.K. to regulate these sectors,” he said.

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