The UK government has launched a new online regulator to protect competition and stop tech giants such as Google and Facebook from exploiting their dominant market positions. The new Digital Markets Unit (DMU) is part of the Competition and Markets Authority (CMA) and will enforce a pro-competition regime covering online platforms with strategic market status.
The DMU has launched its first work programme, launching in 'shadow' non statutory form ahead of legislation giving it full powers. It will work with Ofcom to examine how codes of conduct could work in practice to regulate the relationships between digital platforms and groups such as small businesses.
The new unit will be led by Will Hayter, who joins from the Cabinet Office and will take over as interim head of the DMU in early-May. The government will consult on the design of the new pro-competition regime in 2021 and introduce legislation to give the DMU full statutory powers as soon as Parliamentary time allows.
The UK government is also using its G7 presidency to hold digital competition talks with international partners. In April, the Digital Secretary will host a meeting of tech and digital ministers to build consensus for co-ordination on improved information sharing and joined-up policy/regulatory systems.
The launch of the DMU was welcomed by Simon Hansford, CEO of UKCloud. In a statement, he said it was a "significant step towards ensuring increased competition and innovation online". However, he added that the role of the DMU should be expanded to investigate the impact of tech giants on smaller, mid-sized businesses in the UK, arguing that a diverse marketplace with a wide range of providers is needed to drive the digital economy.
