1 min

Tags in this article

, ,

The United Kingdom has passed its own version of the Digital Markets Act. This will provide a legal framework to weaken the competitive position of large tech companies.

The Digital Markets, Competition and Consumer Bill is the UK’s version of the European Digital Markets Act. The new legislation in the U.K. should be conducive to the competitive position of national tech companies. The rules should eventually make them more competitive against international tech brands, which often dominate the market.

Rules per company

The UK and the EU are thus both working to weaken the market position of mostly U.S. and Chinese tech companies. How that goal is fulfilled varies greatly. Namely, the UK sets rules per company. The EU has a general set of rules that determine who must comply. The companies that must comply are officially called “gatekeepers. Each gatekeeper is then given the same rules.

The UK’s approach seems very time-intensive. In general, though, there is no question that the codes of conduct aim to improve free trade, open choices, and transparency. At the same time, they cut duplication in other areas. Indeed, a fine is issued directly from the Competition and Markets Authority, whereas court approval was previously still required. A fine can be up to 10 percent of global turnover.

Finally, it has not yet been determined to which companies the new UK legislation will apply.

Tip: EU investigating Google, Apple and Meta for Digital Markets Act violations