The UK has adopted the Digital Markets, Competition and Consumer Bill, aimed at regulating large tech companies and enhancing competition. This law is quite similar to the European Digital Markets Act.
Under this Bill, designated tech companies must adhere to stricter rules. These companies are characterized by having a ‘substantial and deep-rooted power’ and a ‘position of strategic importance’ in the UK. While the European counterpart establishes fixed rules for all tech companies labelled as ‘gatekeepers’, the UK plans to create separate rules, or ‘codes of conduct’, for each company. According to the UK government, these codes of conduct can be very broad but are all intended to promote free trade, open choices, and transparency.
If a company violates one of its codes of conduct, the UK Competition and Markets Authority (CMA) can impose a fine of up to ten percent of global sales. Previously, a court’s permission was required for the market supervisor to impose such fines on tech companies, but this law removes that necessity in all cases. It is still unclear which companies will be subject to the DMCC. Spotify has already urged the CMA to include Apple under this law.
Besides the codes of conduct for large tech companies, the law also sets more rules on subscriptions and the sale of second-hand tickets. Additionally, it restricts the use of fake reviews and hidden costs on webshops. The DMCC is expected to come into effect later this year.
