By 2021, the British government announced they would establish an administrative body regulating competitive practices amongst technology companies. The new regulatory unit will focus on the operations of high profiled tech firms such as Facebook and Google, on how they use their dominating influence to relate with their customers and other startups in the industry.
In the early days of 2020, the Competition and Market Authority (CMA) said they needed new policies to reduce the overbearing influence of high profiled tech firm parades. Its operations are beginning to overshadow its regulatory policies. The CMA is an agency that promotes fairness of competition in an industry centered on customers’ interest via investigations. A particular unit within CMA will enforce its new policies that will be active by 2021.
CMA pinpointed Google and Facebook as the world domineering digital advertisers. Based on the competitive regulatory body’s investigations, as of 2019, they said that the US-based tech giants actualized more than a fortune with their advertisement programs. In contrast, only 80% of £14 billion was accounted for in their financial records.
Both Facebook and Google autonomously agreed to be subjected to the British policies about their advertising practices. The US-based tech giants said they are committed to giving their customers the utmost access to their data, which means their customers can choose the ads they want to see. With this kind of sane motive, the tech giants and the British government should have no problem with regulation from next year, right? This is still yet to be seen as country to country has accused the advertising duo of anti-competition practices and have been fined hundreds of millions of dollars and in some cases, billions.
The British Digital Secretary, Oliver Dowden, said that the authoritative attribute is expected of a tech company. Still, it happens to be wrong if only a few among the list of tech firms can exhibit such an officious trait. For instance, where Google and Facebook are the only companies administrating the social networks, it reduces the prospect for innovations and shortening growth, which will further imbibe a negative impact on its users and businesses.
Dowden said: “it is time to address that and unleash a new age of tech growth.”
The CMA’s newly established regulatory unit is set to be active in April of 2021 and responsible for monitoring its subjects’ activities. As a significant body, the Digital Markets Unit is lawfully empowered to annul tech firms’ assessments, stop or suspend a company’s operations, and impose penalties defying its policies.
Henceforth, companies are expected to be transparent in their dealings, whereas tech companies must be mindful of handling consumer data. CMA intent to equalize the liaison between the publishers and its platforms, the newly established regulations are also dedicated to underserved companies in the industry. The new policies have already banned the restrictions that prevent rival platforms from sharing their data.
Currently, CMA has Google on its radar because the Marketers for an Open Web (a group of technology and publishing companies) have been filing complaints about its operations, which might warrant further investigation. In its defense, Google said it only made few upgrades on its tools that give the Chrome browser and its Chromium developer an upper edge over publishers and advertisers. Google also said they need to adapt to the new policies about taking and protecting consumer data.