UK To Impose New Regulations to Limit Giant Tech Firms Power and Control
Technological Firms like Facebook and Google Will Suffer from Several Restrictions
The United Kingdom will be imposing new rules and regulation from the upcoming year that aims to limit and prevent giant tech firms like Google and Facebook from abusing their dominance in the market. According to the Competition and Markets Authority (CMA), these two giant tech firms have accounted for about 80% of the $18.7 billion invested in online advertisements in the past year of 2019.
Limitations for giant tech firms like Google and Facebook
This new regulatory regime would allow more control for the customers over their own personal data. It would also help the thriving of small businesses and setups by the people, along with ensuring that are news outlet are not forcibly removed by their rival developed firms, due to which the government of the United Kingdom is limiting the power of giant tech firms in the region.
According to a statement by Digital Secretary of the United Kingdom Oliver Dowden, that there has been a growing consensus across the United Kingdom and overseas that there has been a concentration of power among a few of the giant tech firms, which are consequently reducing the growth of the entire sector along with decreasing the potential for innovation and in return has a negative impact on numerous businesses and people that solely rely on them. Now is the time when these giant tech firms should be directly addressed and unleash a new era of technological growth and advancement.
The new code of conduct to be implemented in 2021 will provide clear and direct expectations for some of the most influential and powerful technological business firms’ over-representation of suitable actions when they are interacting with other users and competitive business corporations.
Those networking platforms that are directly funded by a digital advertisement are required to be more forthcoming and transparent regarding the services provided by them and how they would be using the personal data of their customers.
Due to the new rules and regulations, giant tech firms like Facebook and Google would be inclined to ask their customers, their personalized choice of ads displayed that would prevent them from stopping any advertisement which is generated from their rival tech business firm. The newly established code would be enforced by a completely separate and dedicated unit located within the CMA.
The Digital Markets Unit will have the authority to reverse, block, or suspend any decision made by the giant tech firms and would have the power to impose any financial penalties for the tech firms for non-compliant behavior. In the past few months, Facebook and Google publically stated that they are willing and committed to working alongside the British government on regulatory measures on a digital advertisement.
News regarding changes in regulations
The newly developed code of conduct is most likely to also affect the media industry of the United Kingdom, which has previously lost a large number of its advertising revenues due to giant tech firms like Google and Facebook. The new rules would help in government if commercial arrangements between different publishers and platforms that would help keep the business of the publisher without much hassle.
The new regulatory measures would also attempt in trying to stop multiple online platforms from implementing unfair terms and conditions on their customers and news publishers that could consequently limit their ability to legalize and monetize the content made by them.
In the past few months, online tech platforms have been continuously used by people across the world to spread false information regarding the coronavirus pandemic, which resulted in the loss of multiple lives worldwide, but the issue was soon taken under control by these giant tech firms to prevent any class action suit against them.