UK adopts new tech rules, but without power to enforce them

Bloomberg

The UK has set out sweeping new plans to regulate tech companies and impose massive fines, but has stopped short of saying how it will enforce the laws.
The government will provide a new watchdog — the Digital Markets Unit — with the power to enforce competition rules, such as stopping firms from hurting rivals by preinstalling their own products, according to a statement from the Department for Digital, Culture, Media and Sport.
The UK first laid out potential plans to create a tech-focused regulator in early 2019, at the time making the country a front-runner in the global push to regulate Big Tech. While the statement provided fresh details about the DMU’s authorities, it remains unclear when it will get powers to enforce the rules. The UK said the government “will introduce legislation to put the Digital Markets Unit on a statutory footing in due course.”
A government spokesman didn’t respond to a request for further detail.
The DMU, the UK’s first tech-focused regulatory agency, will have the power to establish rules to allow people to switch between phone operating systems, such as Android and Apple Inc’s iOS and ensure smaller technology companies won’t be surprised by Big Tech algorithm changes.
The DMU can plan for fines of as much as 10% of global revenue, with an additional penalty of 5% of daily sales for each day an offense continues and allow for publishers and content providers to get greater power to receive payments from large tech firms. It can potentially force firms to share data and make senior managers pay civil penalties if they fail to respond to requests for information.
While the future laws are hard-hitting, almost all of them have been enacted or are being enforced by the European Union and its member states.
The landmark Digital Services Act from the European Union has the power to fine tech firms 6% of global annual sales when its rules go into effect, in 2023 or 2024 depending on the companies’ size. The related Digital Markets Act focuses on issues such as making messaging apps work together.
The DMA — first established in July of last year — will be part of the Competition and Markets Authority, and will be based in Manchester to boost the regulator’s presence outside London. It previously said it aims to have 200 employees based in the northwest English city by 2025.
Countries such as France and Australia have also been forcing tech giants to renegotiate payments with the content providers.
“We want to level the playing field and we are arming this new tech regulator with a range of powers to generate lower prices, better choice and more control for consumers,” said UK Digital Minister Chris Philp in the statement, “while backing content creators, innovators and publishers, including in our vital news industry.”