UK Digital Markets Unit
In the United Kingdom, large tech companies like Facebook and Google will have to follow the new competition rules, or else huge fines will be imposed on them by the government. UK’s new Digital Markets Unit (DMU) will have the power to put a stop to the predatory practices that are followed by some firms.
Where has the Digital Markets Unit been established?
The UK government has established a Digital Markets Unit (DMU) within the Competition and Markets Authority (CMA) with the aim of operationalizing the digital markets’ pro-competition of the future.
What will the DMU oversee?
The DMU will be overseeing a new kind of regulatory regime that will be made applicable to the most powerful digital firms. This will promote greater innovation as well as competition in these markets. It will also protect the businesses and the consumers from any form of unfair practices. It also aims to give the users more control of their own data. Also, the DMU will ensure that people are able to switch between the operating systems of phones such as Android or IOS without losing their messages and data.
What is the DMU looking to prevent in the future?
In the future, the DMU has the aim of preventing giant tech firms such as Meta from buying a smaller rival when and if it identifies that the smaller firm possesses competition to the tech giants. Also, the giant tech firms will have to report any such takeovers before it is completed to the CMA so that the CMA can investigate before giving a green light.
How much fine will be imposed for not complying with the rules of the DMU?
It will also be able to impose fines on the companies up to 10 per cent of their total global turnover. 5 per cent extra will also be charged per day if the companies continue to commit offences.
Month: Current Affairs - May, 2022
Category: International / World Current Affairs