UK tech regulator will have power to impose fines on tech giants
Good news for victims of security breaches everywhere. A new tech regulator, dubbed the Digital Markets Unit (DMU), will have the power to hand down multibillion-pound fines to large technology firms. These financial penalties will be reserved for rulebreakers who fall foul of legislation designed to protect businesses and consumers who utilise their technology.
While it's speculated that a draft bill will be included within the Queen's speech in the coming week, ministers are expected to introduce new leglisation underpinning the DMU's powers, according to the Department for Digital, Culture, Media and Sport.
DMU to Specify ‘Codes of Conduct’ for Biggest Tech Firms
The Digital Markets Unit was established in 2021 and falls under the UK government's Competition and Markets Authority. The intention is for the DMU to specify new codes of conduct that dictate how the largest tech firms, like Google and Facebook, can operate within the United Kingdom.
Under this new leglislation, it is said that consumers and businesses will be able to exercise greater freedoms around their use of smartphone technology. For example, they’ll be able to specify which search engine that they use and have easier access to opt-outs for targeted advertising.
“The customer is always right, but sometimes they don’t get a choice (...) We’ll stop companies from using their power to harm customers, whether they’re limiting shoppers’ choices to certain software on their devices or making it hard for people to decide how their data is used.”
DMU to Impose Fines of up to 5-10% of Global Turnover
When the new leglisation has been passed, tech companies will be required to inform businesses of any large changes to their services, such as changes to web traffic and search algorithms.The DMU will also have the power to weigh in on disputes between media agencies and tech firms, ensuring that content creators are fairly compensated for their work. Software developers will also enjoy a more transparent process when marketing and selling their applications, according to the UK government.
Under new leglisation, the DMU will have the power to set fines of as much as 10% of a company's global turnover. The unit could also impose a fine of 5% of global turnover for each day on which an rule breach continues.
“Technology has revolutionised the way thousands of UK firms do business – helping them reach new customers and putting a range of instant online services at people’s fingertips. But the dominance of a few tech giants is crowding out competition and stifling innovation.”
”We want to level the playing field and we are arming this new tech regulator with a range of powers to generate lower prices, better choice and more control for consumers while backing content creators, innovators and publishers, including in our vital news industry.”
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