Tech giants may face billions in UK f ines

GOOGLE, Facebook and other tech giants should face multi-billion-pound fines if they flout a code of conduct, a regulator says.

The Competition and Markets Authority (CMA) wants a special regime to prevent the largest internet firms abusing their dominant positions.

It is calling for a legally binding code of conduct and for Britain’s proposed online watchdog, the Digital Markets Unit, to be given tough powers – including fines of up to 10 per cent of a firm’s global turnover. Google’s parent company, Alphabet, is expected to make £134billion this year, so breaking the rules could cost it more than £13billion. Facebook is in line to make £61.8billion.

The code would force firms to treat other businesses and their customers fairly, to be transparent about how they use data and to ensure their services don’t stop people using rival ones.

It could also force tech giants to pay publishers for news content. The CMA says firms such as Google and Facebook hold ‘unassailable’ positions that threaten fair competition. Between them, they command 80 per cent of Britain’s £14billion digital ads market, while Google controls 90 per cent of internet searches.

Critics claim the giants simply buy smaller rivals that pose a threat, or crush them with copycat products. The proposed code could also apply to Amazon, eBay, Netflix, Microsoft and Apple.

CMA chief executive Andrea Coscelli said: ‘To ensure a thriving tech sector, consumers and businesses who rely on giants l i ke Google and Facebook should be treated f airly and competitors should face a level playing field, enabling them to deliver the innovative products and services we value.’

The Government has promised to set up the Digital Markets Unit, the first regulator of its kind in the world, to police the proposed rules.

Rocio Concha, of the consumer group Which?, said yesterday: ‘It is vital that the Digital Markets Unit is up and running as soon as possible and the Government resists calls to water down the powers it needs to promote innovation and challenge the tech giants.’

It came as Health Secretary Matt Hancock was accused of pandering to Mark Zuckerberg when the Facebook chief threatened to pull investment from Britain.

Minutes of a meeting in 2018 reveal that Mr Hancock, who was then culture secretary, vowed that new laws regulating social media could be ‘proportionate’ – days after promising legislation to tackle the internet’s ‘Wild West’ approach to harmful content. Facebook said it backed regulation. The Department for Digital, Culture, Media and Sport said it was committed to tackling online dangers.