Large tech companies in the United Kingdom, including companies like Google and Facebook, will soon have to abide by new competition rules in the country or they will face potentially huge fines.
The new Digital Markets Unit in the British government will be handed the powers to clamp down on “predatory practices” of some of these tech firms.
The new regulating body will also have the power to fine companies up to ten percent of their overall global turnover if they fail to comply with the new rules.
Besides trying to boost competition between technology firms in the UK, the rules will aim to also give users more control over their data.
Apple, Meta, and Google will all be under these new rules.
The Department for Digital, Culture, Media, and Sport said that large fines could be handed to the tech companies, as well as additional penalties of five percent of the daily global turnover for each day that an offense continues.
For companies such as Apple and Meta, that could mean tens of billions of dollars in loss.
Digital minister Chris Philip said that the British government wants to level the playing field in the technology industry, in which companies in the U.S. have been accused of abusing their market dominance.
Philip said specifically that the dominance of a few tech giants in crowding out the competition and also stifling innovation within the industry.
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