UK body to clip Big Tech’s wings over news control

LONDON: Britain’s new regulator for tech giants Facebook and Google was set to launch on Wednesday with an initial remit to see if a code of conduct could improve the balance of power between the platforms and news publishers.

The Digital Markets Unit (DMU), based in the Competition and Markets Authority (CMA), has been set up to stop big tech companies abusing their market dominance after the competition regulator said existing rules were not enough. The power and reach of Big Tech has grown faster than governments’ ability to keep them in check.

A row, now resolved, between Facebook and the Australian government in February over payment for local news highlighted the disparity. The tech company blacked out news content in response to planned legislation, a move condemned by publishers and politicians in multiple countries.

Britain’s digital secretary Oliver Dowden said he had asked the DMU to look at how a code could govern the relationships between platforms and content providers, such as news publishers, to ensure they were as fair and reasonable as possible. “The Digital Markets Unit has launched and I’ve asked it to begin by looking at the relationships between platforms and content providers, and platforms and digital advertisers,” he said.

“This will pave the way for the development of new digital services and lower prices, give consumers more choice and control over their data, and support our news industry, which is vital to freedom of expression and our democratic values.”

The unit was set up after the CMA concluded last year that Google had significant market power in search and in search advertising, and Facebook had significant market power in social media and in display advertising. Britain said the unit will coordinate with international partners that are grappling with tech regulation.

THE NEW UK BODY WILL COORDINATE WITH GLOBAL PARTNERS GRAPPLING WITH TECH REGULATION