The Department of Culture, Media and Sport (DCMS) has assured that it will empower the DMU with statutory powers to penalize firms that do not meet, following reports that the UK government had dropped plans to heavily regulate Apple and other big tech companies using a new Digital Markets Unit.
The DMU will be given the power to create a code of conduct for big tech companies in the UK if it is set up in 2020. An interim report published by the Competition and Markets Authority (CMA) earlier this year was intended to focus the DMU's attention, and it was met with an aggressive response from Apple.
The DMU has around 60 members of staff, but has no powers beyond the capabilities of the CMA. The DMU is looking into the terms of Apple's App Store and Apple and Google's dominance over mobile ecosystems. The DMU will be given powers to address predatory practices of some big tech companies with the aim of boosting competition and giving users more control.
Provisions to make it easier for users to switch between devices and to give users more control over how their data is used are included in the proposals. There are plans to give small and medium-sized businesses better pricing from services offered by big tech companies, as well as insights into the algorithms that drive traffic and revenues. Chris Philp is the digital minister.
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.
The DMU will be able to fine companies that break its code of conduct 10 percent of their annual global turnover, with an extra five percent of daily global turnover added per day that the violation continues. If Apple is found to have broken the DMU's rules, it could be fined tens of billions of dollars. If the company is found to have not engaged properly with requests for information, senior managers could face civil penalties.
Legislation to empower the DMU will be included in this year's Queen's Speech, which sets out the government's agenda for the coming year. The government says that the necessary legislation will come in due course, but it's not clear when exactly the powers will come into force.
In the United States, Japan, South Korea, the European Union, and more, Apple's app store policies are being closely watched by regulators, with a clear appetite from global regulators to explore requirements.
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