Tech giants such as Alphabet (Google) and Facebook owner Meta will face millions of pounds in fines if they breach new digital privacy rules to be introduced by the UK government.
Beefed up powers of the competition authority’s Digital Markets Unit (DMU) will be outlined next week in the Queen’s Speech and are expected to include the scope to impose fines of up to 10% of a company’s global turnover for rule breaches and 5% of daily turnover until the problem is rectified.
Legislation is expected to be introduced to reinforce the DMU’s authority, but reports today suggested this will not be until later.
Data usage has become a controversial issue across Europe and the US, with Google and Facebook both hit with hefty fines in France for violating privacy laws.
In the UK in future, tech firms will have to tell customers about major changes to how they operate - such as changes in their algorithms that affect where content appears.
The DMU will also be able to arbitrate payment disputes between the tech groups and content and news providers and ensure app developers also get a fairer deal.
Giving people and small businesses greater control over their personal data and how it is used is the aim of the new powers, the government said today.
“We’ll stop companies from using their power to harm customers, whether they’re limiting shoppers’ choices to certain software on their devices or making it hard for people to decide how their data is used,” said Consumer Minister Paul Scully.
Britain's competition authority the CMA also welcomed the moves.
“The CMA welcomes these proposals and we’re pleased that the government has taken forward a number of our recommendations that will allow the DMU to oversee an effective and robust digital markets regime in the UK,” said Andrea Coscelli, the chief executive of the CMA.
The DMU was set up last year as part of the CMA.