Ex-boss of UK's Competition and Markets Authority asks: How can it tackle Big Tech when no one knows what the CMA is?
- Reference: 1625233511
- News link: https://www.theregister.co.uk/2021/07/02/ex_uk_competition_watchdog_boss/
- Source link:
Former Tory MP Andrew Tyrie – now Lord Tyrie – was chair of the regulator between 2018 and 2020. In a report published by the Policy Institute think tank, he argued that for many businesses and consumers in the UK, the CMA is all but invisible.
The paper, titled [1]"The Competition and Markets Authority: a reboot for the 2020s" , found that two-thirds of businesses did not know that the CMA enforces competition law in the UK. Two-fifths said they had never heard of it.
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While the report examines competition and regulation across all business sectors, it spends a good chunk of time focusing on activities in the digital space.
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"The platforms, and digital technology, have brought huge gains for consumers. But they have also brought new and deeply concerning forms of detriment. Not least among them has been an aggravation of the trend of weakening competition," said the report.
[5]UK's competition watchdog preps to shoulder post-Brexit workload from European Commission
[6]UK competition watchdog launches investigation into fake review epidemic across Google and Amazon
[7]UK competition watchdog begins probe into Apple and Google's total domination of the mobile landscape
[8]Norton dodges UK courts after telling Brit watchdog it will be nicer to consumers
Citing studies from the EU and US, the report agreed that the "market power of online platforms is getting stronger, and that competition policy has struggled to keep pace with the changes to markets and business models wrought by digitalisation."
It warned that the government will need to move quickly if it is going to have sufficient power to tackle those companies that push the boundaries of competition law, not just on [9]issues such as fake reviews as announced recently , but on other concerns such as data harvesting.
While Tyrie was keen to point out the CMA's failings, he did offer some practical suggestions, including calling for tougher controls to be put in place – and quickly – to improve protections against dodgy practices. He also wants to see the introduction of a simple way to alert the CMA about potential rip-offs.
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"The fact that so many businesses either haven't heard of the CMA, or don't understand what it does, is a very concerning state of affairs and cannot be allowed to persist. It urgently needs a stronger public voice, as without it, the CMA's ability to deter anti-competitive behaviour will be sharply reduced. Again, it is the consumer – millions of us – who lose out," said Tryie.
Last month, the current head of the UK's competition regulator said the body planned to " [11]come down like a ton of bricks " on anyone attempting to stifle the country's economic recovery.
Jonathan Scott said the nation was now ready to "step up and fulfil the regulatory role previously held by the European Commission."
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In the last month alone, the CMA has shone a spotlight on the activities Amazon, Apple, Facebook, and Google on issues ranging from fake reviews to alleged advertising abuses. ®
Get our [13]Tech Resources
[1] https://www.kcl.ac.uk/policy-institute/assets/cma-reboot-2020s.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YN84HdX1lI35ERHHODNFUgAAAIQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YN84HdX1lI35ERHHODNFUgAAAIQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YN84HdX1lI35ERHHODNFUgAAAIQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2021/06/28/cma_law_society/
[6] https://www.theregister.com/2021/06/25/uk_cma_google_amazon_fake_reviews/
[7] https://www.theregister.com/2021/06/15/cma_google_apple_mobile/
[8] https://www.theregister.com/2021/06/14/norton_cma/
[9] https://www.theregister.com/2021/06/25/uk_cma_google_amazon_fake_reviews/
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YN84HdX1lI35ERHHODNFUgAAAIQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://www.theregister.com/2021/06/28/cma_law_society/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YN84HdX1lI35ERHHODNFUgAAAIQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[13] https://whitepapers.theregister.com/
Re: "come down like a ton of bricks"
That means they will ship those bricks to Amazon fulfilment centre and flog them as artisan door stops.
Jurisdiction
The CMA surely has problem of jurisdiction, in that Apple, Google, Amazon, FaceBook etc. are all foreign / multi-national companies which use the advantages of doing business from a foreign country to avoid (legally AFAIK) taxes and possibly some consumer protection laws (el Reg legal Beagles please advise) in this country.
With all this international trade (ignoring the customs issues of the Northern Ireland protocol), it must be a nightmare job. It is all very well 'shining a spotlight' on fake reviews on websites, but the enormous effort individuals actually have in getting the web giants to take action shows how difficult the CMA's job is. Even Martin Lewis had to take FB to court to get them to take down fake ads using his name and image to sell financial 'products' (https://www.bbc.co.uk/news/technology-46972940), and it took him ages.
I do not envy them their task.
Re: Jurisdiction
Surely these big companies have legal presence here, so they are under our jurisdiction.
The problem is, they have so much money, they can afford to buy any politician trying to do anything about their tax avoidance and other anti-competitive behaviour.
Also where was CMA when Rishi thrown under a bus thousands of small businesses and given competitive advantage to his family Infosys and the likes with IR35?
Re: Jurisdiction
"The CMA surely has problem of jurisdiction, in that Apple, Google, Amazon, FaceBook etc. are all foreign / multi-national companies which use the advantages of doing business from a foreign country to avoid ... possibly some consumer protection laws (el Reg legal Beagles please advise) in this country."
If you're trading in the UK, you're legally required to form a company of some description. All of those you mentioned have UK domiciled subsidiary arms, which would place that entity/those staff under local jurisdiction.
Re: Jurisdiction
>If you're trading in the UK, you're legally required to form a company of some description.
Really ? I bought a load of stuff from china and I don't think Store12345 on aliexpress have a major UK subsidiary.
Remember Google don't trade in the UK, they merely advertise - all their sales happen in Dublin.
The former head of the UK's Competition and Markets Authority (CMA) has put the boot into his old employer, saying it lacks the necessary clout to take on the world's biggest digital companies.
Former Tory MP Andrew Tyrie – now Lord Tyrie – was chair of the regulator between 2018 and 2020. In a report published by the Policy Institute think tank, he argued that for many businesses and consumers in the UK, the CMA is all but invisible.
The paper, titled "The Competition and Markets Authority: a reboot for the 2020s", found that two-thirds of businesses did not know that the CMA enforces competition law in the UK. Two-fifths said they had never heard of it.
I don't understand how he isn't just putting the boot into his own tenure there. Why didn't he say this when he was in post, and lots more people would've heard of it?
Monopoly
...and while he is at it, why is there only one Competition and Markets Authority?
"come down like a ton of bricks"
So, does that mean that the fine will be 1% of the company's daily revenue, or 0.001 % ?