UK digital markets watchdog expects to launch investigations within the month using new powers
- Reference: 1736328727
- News link: https://www.theregister.co.uk/2025/01/08/uk_markets_watchdog/
- Source link:
The CMA has set out plans for how it will use the Digital Markets, Competition and Consumers Act which came into force on 1 January 2025 by saying it would use powers to fine big tech companies abusing their market power — nominally a maximum of 10 percent of global revenue. However, The Register understands the regulator sees fines as "a backstop" and would rather resolve legal compliance in advance of such measures.
Under the new competition law, the CMA said it would designate companies with "Strategic Market Status" or SMS in relation to their digital activities. The status is designed to capture the largest companies and specific activities within them. Once designated, the status would then allow the CMA to impose conduct requirements tailored to each company and/or activity.
[1]
For example, if an online marketplace with SMS was found to be using its sellers' data to give it an unfair advantage, a conduct requirement could prevent it from using the data in a certain way, or compel it to use the data more fairly.
[2]
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Also within the CMA's arsenal will be pro-competition interventions, which can be imposed following a nine month investigation. A PCI might apply to preventing apps or services from a rival from working on its platform and force the platform provider to be more open, benefitting UK businesses and consumers.
The EU has already introduced legislation in this area. Its [4]Digital Markets Act applies to companies who act as gatekeepers of online services and are designed to ensure equal access for some third-party software.
[5]
In June last year, the European Commission published preliminary findings that accuse Apple of breaching the DMA by preventing developers from telling customers about options outside the App Store. Apple later performed an abrupt [6]U-turn by approving the Epic Games Store in the European Union.
[7]Game of phones: Voda-Three merger left rivals dialing for help
[8]Microsoft reshuffles execs in Europe, Middle East and Africa unit
[9]Dutch watchdog wants more powers after EU drops Microsoft Inflection probe
[10]Apple accused of hoodwinking UK antitrust cops
The UK's law addresses many of the same objectives as the DMA but does not pre-designate "gatekeepers" of online services.
Despite the new powers the CMA has acquired in the UK, it faces a huge imbalance in resources compared with the tech giants its hopes to restrain from anti-competitive behavior. In the 2023/24 financial year, [11]its total expenditure was £147.20 million ($184 million). That's less than 0.1 percent of Apple’s annual revenue, for example. ®
Get our [12]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Z35a1Yp0bT2mC0zlRIfcHgAAAFQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z35a1Yp0bT2mC0zlRIfcHgAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33Z35a1Yp0bT2mC0zlRIfcHgAAAFQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://www.theregister.com/2023/08/25/google_eu_dsa/
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Z35a1Yp0bT2mC0zlRIfcHgAAAFQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2024/07/08/apple_epic_u_turn/
[7] https://www.theregister.com/2024/10/09/vodafone_three_merger_remedies/
[8] https://www.theregister.com/2024/10/28/microsoft_reshuffles_execs_in_emea/
[9] https://www.theregister.com/2024/09/19/netherlands_acm_microsoft_inflection/
[10] https://www.theregister.com/2024/09/05/apple_safari_uk_cma/
[11] https://www.gov.uk/government/publications/cma-annual-report-and-accounts-2023-to-2024/annual-report-and-accounts-2023-to-2024#directors-report-financial-review
[12] https://whitepapers.theregister.com/
Re: So it's the same b.s. as in Europe then...
Indeed.
Unfortunately, the powers that be are so heavily lobbied, and the enforcement agencies so wedded to bureaucracy that it never occurs to them that building an environment where potential competitors can grow (the carrot part of carrot and stick) might be a good idea.
Instead, the stick is threatened for everybody and the global corporations with vast legal departments carry on exactly as they always did.
..and the powers that be declare in the Sunday Papers "See, we're doing something about the online menace!"
Re: So it's the same b.s. as in Europe then...
I'd really prefer it if everyone started calling bribery what it is rather than euphemisms like lobbying, hospitality, strategic partnership and so on. These problems could be sorted out at a stroke if bribery wasn't made effectively legal by calling it something else. :|
"a huge imbalance in resources"
I don't really see why that is a problem. If you're a governing body, you don't have to have billions in revenue to fine a company for billions millions a few hundred thousand.
Roupies.
I would really like to see a fine in the billions once in my life.
It's the only way we're ever going to get those companies to comply.
Re: "a huge imbalance in resources"
Totally with you Pascal.
But like the rest of the learned El Reg readers, we know this will take a generation or two to actually grow some teeth.
Global Mega Companies are too rich to care about the damage or harm they are causing.
We need an actual shift in culture to affect the change needed I think, and that my friend is unlikely to be seen in our lifetime I am sad to say.
Money will be used to protect the money.
Mega Corps have more money than some countries and that will be used to operate with impunity until actual executives are held to account.
So it's the same b.s. as in Europe then...
First you ask them to comply...
Then when they don't you fine them...
And after 10+ years of court you settle for 0.1% of the original fine...
That they're not going to pay anyway...
Rinse and repeat...