The British Government Says Technology Giants Will Have To Abide By The New Competition Rules Or Face Huge Fines

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According to the BBC, the UK government said that large technology companies such as Google and Facebook would have to comply with the UK's new competition rules or face huge fines** The new digital marketing unit (DMU) will be empowered to combat the "predatory behavior" of some companies.

UK regulators will also have the power to impose fines of up to 10% of their global turnover on companies that fail to comply.

In addition to promoting competition among technology companies, these rules are also designed to give users more control over their data. The BBC contacted several major technology companies, including Apple , meta and Google, but no response was received.

The Department of digital, culture, media and sports (DCMs) said that in addition to huge fines, technology companies could also be subject to additional penalties, i.e. 5% of global daily turnover for each day the violation continues. For a company like apple, that could be tens of billions of dollars.

"If companies fail to properly participate in information requests, their executives will face civil penalties," a UK government official said

However, it is unclear when these changes will take effect, as the UK government said the necessary legislation would be introduced "at an appropriate time".

Chris Phelp, the UK digital minister, said the government wanted to "create a level playing field" in the technology industry, with a small number of US companies accused of abusing their dominant market position.

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

In addition to trying to hold big technology companies accountable, DMU will seek to give people more control over how technology companies use their data - for example, targeted personalized advertising. It will also make it easier for people to switch between mobile operating systems such as apple IOS or Android and social media accounts without losing data and information.

Critics call the closed system a "walled garden" that locks consumers into using a particular company's products. The UK government said that Google's search engine is currently the default search engine for Apple products, and regulators will also review it. It added that it hoped that news publishers would receive fair remuneration for their content - and would give regulators the power to resolve conflicts.

The move is to deal with the friction between meta, Google and news publishers. The focus of the debate is that while many local and national news organizations struggle to survive, technology giants are releasing record profits - and increasing advertising revenue from their stories.

Meta and Google argue that this relationship is symbiotic, and they direct traffic to news organizations.

Last year, a proposed law aimed at "fair competition" in Australia led Facebook to temporarily block Australian news organizations - before reaching an agreement.

The British government said its new rules could increase the "bargaining power" of national and regional newspapers.

There is no doubt that a few technology giants have greatly allocated the market and hoarded considerable profits. They have a captive market and they don't want to share it. Google search is so popular, "Google" is a commonly used verb. About 90% of Internet searches are conducted on Google's search engine. But many people question whether a company should have such a dominant position in an important part of the Internet. Critics argue that Google's monopoly means the company can charge as much as it wants - which is ultimately detrimental to a healthy and competitive economy.

The new UK regulator has decided to impose a staggering fine on these companies for not allowing fair competition - 10% of global turnover and an additional 5% per day if they continue to take no action. This is a huge sum of money - even for companies worth trillions of dollars. This is enough to attract their attention.

The plan also includes measures to give companies such as meta and apple "strategic market position", which means that they must report to the UK competition and Markets Authority (CMA) before the acquisition is completed for potential investigation.

For a long time, technology giants have been criticized as acquisition competition as part of the "copy, acquire and kill" strategy. The criticism here is that start-ups are acquired before they have a chance to become too big, threatening their monopoly.

In addition, there are rumors that the digital market sector will not be given legal status - and therefore lack influence, but the UK government said it would introduce legislation to place regulators in a legal position "in due course".

Which consumer group? He said that in the "interests of British consumers and businesses", "the digital market sector must be properly authorized".

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