The UK digital market group was launched in 2020 and is expected to be given legal enforcement power over big technology in 2022. However, the British government now expects that it will not authorize the group at all, so the newly established organization has become a "toothless tiger" The UK said in its 2020 announcement that its new digital market group would prevent large technology companies from abusing their dominant market position, which was described as a "tough new regulator". The Department was officially launched in 2021 and belongs to the competition and market authority, but more legislation is needed to fulfil its declared responsibilities.
Now, according to the financial times, the newly established so-called "tough" institutions may never get power in the end. This is because the establishment of such regulators requires new legislation in the UK. The goal is to set rules for large technology companies and Internet companies, and then impose fines on them if necessary.
The legislation is planned to be introduced in 2022, but according to the financial times, it is not part of the government's plan for the coming year. These plans have traditionally been announced in the Queen's speech, which is scheduled for May 10 this year.
Julian knight, chairman of the house of Commons Committee on digital, culture, media and sports (DCMs), said: "if the legislation is abandoned, it will be a heavy blow to the UK's ability to regulate these industries, [which will ] damage the credibility of enterprises in the whole country."
" [prime minister Boris Johnson ] told us that the conservative government would not pass legislation to achieve prosperity and growth," an official who asked not to be named told the publication.
The new legislation is expected to be abandoned after the UK government decided to abandon the recommendations on audit and corporate governance reform.
DCMs told the publication that it "cannot comment on the timetable of potential future legislation". Nevertheless, the Department insisted that the UK would "change the behaviour of the most powerful technology companies and protect businesses and consumers dependent on them throughout the economy".
Currently, DMU employs 60 employees. These employees are dealing with existing CMA survey issues, such as Apple Antitrust issues in the company's app store.
Recently, while its own large app store antitrust matters, the EU's equivalent Commission has warned apple that Apple pay violates the antitrust law. The agency continues to investigate, and according to the final result, Apple may be fined 10% of its global turnover.