London, April 25 (SocialNews.XYZ) The UK government on Tuesday introduced a new legislation to tame Big Tech from abusing market power and ensure businesses and consumers are protected from rip-offs and can reap the full benefits of the digital economy with confidence.
Fake reviews that cheat customers, subscription traps that cost more than a billion pounds a year, and new powers for the Competition and Markets Authority (CMA) to tackle businesses that breach consumer rights law are all elements of the far-reaching bill.
The new powers are aimed at boosting competition in digital markets currently dominated by a small number of firms and tackling fake reviews so customers aren't cheated by bogus ratings.
"From abuse of power by tech giants, to fake reviews, scams and rip-offs like being caught in a subscription trap - consumers deserve better. The new laws we're delivering will empower the CMA to directly enforce consumer law, strengthen competition in digital markets and ensure that people across the country keep hold of their hard-earned cash," Business and Trade Minister Kevin Hollinrake said.
As part of the bill, a Digital Markets Unit (DMU) within the CMA will be given new powers to tackle the excessive dominance that a small number of tech companies have held over consumers and businesses in the UK.
"This market dominance has stifled innovation and growth across the economy, holding back start-ups and smaller firms from accessing markets and consumers," said the government.
The new digital regime will give the DMU powers to ensure that businesses and consumers are not unfairly disadvantaged by the biggest players, allowing them access to dynamic and thriving digital markets that will ultimately support the economy to grow.
For example, the biggest tech firms may be instructed by the DMU to provide more choice and transparency to their customers. If firms don't abide by these rules, the DMU will have the power to fine them up to 10 per cent of their global turnover.
Firms may be told to give customers greater flexibility when purchasing products online and to break down restrictive technical barriers that block users from using products on different devices and systems.
"Today's announcement shows we are proudly pro-growth and pro-innovation across the board in the tech sector, seeking to open up new opportunities for all firms, however small or large they are, while empowering consumers," Minister for Tech and the Digital Economy Paul Scully said.
The new powers in this bill help the CMA take swift, decisive action to tackle rip offs, protecting consumers whether they are shopping online or on the high street.
"The new fining powers will provide an important deterrent to businesses seeking to take advantage of people while also ensuring fair dealing businesses can thrive," Chief Executive of the CMA Sarah Cardell said.
New measures will come into effect as soon as possible following parliamentary approval, subject to secondary legislation and the publication of guidance.
Source: IANS
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