Tech giants need more competition

15 Mars, 2019, 16:12 | Auteur: Auguste Feret
  • Philip Hammond

"Some say this is inevitable or even desirable".

"Bad regulation can be as big a barrier to competition and innovation as monopolistic activities", TechUK CEO Julian David said".

"The UK must remain a welcoming place for digital business from around the world, and ensure that the UK competition and wider regulatory framework is not in conflict with the other leading digital economies with which we must compete".

The Chancellor, Philip Hammond, was right to recognise there is a better way than just continuing with the status quo. "There are a lot of benefits to the digital sector", says Mr Furman, "but when you have these large companies that are so dominant in so many markets, consumers do not have the choices they should have".

"These recommendations will deliver an economic boost driven by United Kingdom tech start-ups and innovation that will give consumers greater choice and protection".

The recommendations include setting up a new digital markets unit with expertise in technology, economics and behavioural science and the legal powers to back it up.

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The review also wants the government to introduce powers to force the largest companies to open up to smaller firms through providing access to key data sets, when doing so does not affect privacy. Competition is fundamental to ensuring the market works in the interest of consumers, but we know some tech giants are still accumulating too much power, preventing smaller businesses from entering the market.

United Kingdom finance minister Philip Hammond, who will deliver a half-yearly update on the budget later on Wednesday, said he would set out government measures to ensure digital markets are competitive later this year.

Damian Collins MP, chairman of the House of Commons Digital, Culture, Media and Sport (DCMS) select committee also backed calls for tighter regulation.

Unlocking digital competition, Report of the Digital Competition Expert Panel is here. According to the report, publishers complain that because the digital advertising supply chain is opaque, it's hard for them to get a fair return on ads that go with their content.

"It is clear that a strong code of ethics is needed to regulate online platforms, and I agree with the report's conclusion that the proposed code of competitive conduct is complementary with the code of ethics suggested by my committee".

As we've observed before, with growing cynicism, empty gesture politics when it comes to tech regulation, particularly from non-US authorities in relation to U.S. firms, are empty calories in terms of responsible action. He believes more companies would then be able to join the market on a more equal-footing - ushering in a new wave of innovation and the creation of new social media and online search platforms.

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