Britain plans to impose a new competition regime next year to prevent Google and Facebook from using their dominance to drive small firms out of competition and harm consumers.
The law will implement a dedicated unit within Britain’s Competition and Markets Authority, which earlier this year said it needed new laws to keep tech giants in check.
The UK Competition Regulatory Authority said: Google and Facebook dominate digital advertising, with nearly 80 percent of the £ 14 billion spent in 2019.
The two US companies said they are committed to working with the UK government and regulator on digital advertising, which includes giving users greater control over their data and the ads shown to them.
British Digital Technology Minister (Oliver Dowden) said that while he is an “unabashed supporter of technology”, there is a growing consensus that the concentration of power in a small number of companies limits growth, limits innovation, and leads to negative impacts on individuals and companies. On which it depends.
“It is time to tackle that and unleash a new era of technical growth,” Dowden said Friday.
The newly established Digital Markets Unit, which will start operating in April, can be granted powers to suspend or prevent decisions made by technology companies and impose financial penalties for non-compliance.
Companies will need to be more transparent about how they use consumer data, the government said, and restrictions that make it difficult to use competing platforms will be banned, adding that the rules will also support the news industry, restoring balance to the relationship between publishers and platforms.
The British Competition and Markets Authority said on Monday: it is assessing that complaints against one of Google’s technology call for a formal investigation.
Marketers for an Open Web, an alliance of companies from the technology and publishing sectors, said Google is modifying the Chrome browser and Chromium developer tools to give it greater control over publishers and advertisers.
Google said: The advertising practices need to adapt to changing expectations about how data is collected and used.