Tough new laws will force the tech giants to play fair

They’ll have to pay up for news... and give consumers a better deal

TECHNOLOGY giants will be subjected to tough laws to stop them exploiting consumers and rivals, ministers said yesterday.

A new watchdog, the Digital Markets unit, will be able to force firms

such as google and Facebook to comply with codes of conduct or forfeit up to 10 per cent of global turnover. under a raft of measures:

■ THE DMU will have the power to ensure online giants pay a fair price to news publishers for content;

■ THE WATCHDOG will also reform digital markets, cutting fees for both advertisers and businesses to deliver lower prices for consumers;

it will be made easier to switch between Apple and Android phones and different social media accounts;

■ Tech firms may have to warn smaller companies about changes to algorithms that could damage traffic and revenues;

■ The Dmu will be able to stop firms limiting consumers to pre-installed software on smartphones.

the proposals are part of the government’s long-awaited plans to tackle the dominance of technology giants and boost competition online.

Ministers said the DMu would give consumers ‘more choice and control’ on the

‘Better products and greater choice’

internet while also protecting small businesses from ‘predatory practices’.

the announcement paves the way for a Bill to be included in the Queen’s Speech next week that will give the watchdog the statutory underpinning it needs.

Campaigners have urged Boris Johnson to include this in the upcoming legislative programme to ensure Britain does not lose its chance to become a world leader in online regulation.

For years, news organisations have raised concerns over the dominance of uS tech giants in digital advertising.

Many also believe the firms are manipulating their algorithms to disproportionately direct search enquiries toward favoured businesses.

in a bid to improve the bargaining power of the Press, the DMu will set out how firms such as google and Facebook must trade with news publishers. the watchdog will mediate in case of disputes.

the government said this would ‘increase the bargaining power of national and regional newspapers, and force social media platforms to be more transparent on how they position publishers on their platforms, and what algorithms are being used’. Consumer minister Paul Scully said: ‘We’re ensuring our modern, digitised economy gives consumers better products, greater choice and lower prices by having companies compete for customers on a level playing field. the customer is always right but sometimes they don’t get a choice.

‘We’ll stop companies using their power to harm customers, whether they’re limiting shoppers’ choices to certain software on their devices or making it hard for people to decide how their data is used.’

the DMu was launched within the Competition and Markets Authority a year ago but still needs legislation for it to be able to use its powers. Consumer watchdog Which? said it was essential the DMu was ‘properly empowered’ for the sake of consumers and businesses.