Giant tech companies facing massive penalties under eye of new watchdog

A REGULATOR is to police the “excessive dominance” of big technology platforms with the power to fine them up to 10 per cent of their global turnover under new legislation.

The Digital Markets Unit, which was launched two years ago within the Competition and Markets Authority, will be given new powers to ensure consumers and businesses are not unfairly disadvantaged by the biggest players. Firms deemed to have “strategic market status” in key digital services could be forced to abide by rules on how they operate or face heavy fines under the draft Digital Markets, Competition and Consumers Bill.

The unit will be able to carry out targeted interventions to allow startups or smaller firms to compete.

The bill also enables the Government

to ban sites from facilitating fake reviews or advertising consumer reviews without taking reasonable steps to check they are genuine.

New rules will ensure consumers can end subscriptions in a straightforward, cost effective and timely way and require businesses to send a reminder when a free trial or introductory offer is coming to an end.

Business and Trade Minister Kevin Hollinrake said yesterday: “Smartphones and online shopping have profoundly changed the landscape for businesses, consumers and the foundations of a modern thriving economy, which now lie in strong consumer choice, confidence and competition.

“From abuse of power by tech giants, to fake reviews, scams and rip-offs like being caught in a subscription trap – consumers deserve better.

“The new laws we’re delivering today will empower the Competition and Markets Authority to directly enforce consumer law, strengthen competition in digital markets and ensure that people across the country keep hold of their hard-earned cash.”