UK targets big tech to boost online consumer rights

Global tech giants could face fines of up to
10 percent of their annual turnover if a British government bill to protect
consumers launched on Tuesday becomes law.

The bill aims to strengthen competition in digital markets and crack down
on subscription traps as well as prevent online scams such as fake reviews.

It envisages giving the Competition and Markets Authority (CMA) regulator
greater powers to tackle breaches of consumer rights law directly rather than
through lengthy court proceedings.

“The reforms will also heighten the consequences for wrongdoers as the CMA
and the courts will have the power to impose penalties of up to 10 percent of
global turnover for breaching consumer law,” the government said in a
statement.

“Today’s bill will also enable the government to ban the practice of
facilitating fake reviews or advertising consumer reviews without taking
reasonable steps to check they are genuine.

“New rules will ensure consumers can exit subscriptions in a
straightforward, cost-effective, and timely way and require that businesses
issue a reminder to consumers when a free trial or introductory offer is
coming to an end.”

Other measures include handing the CMA new powers to tackle the “excessive
dominance” of a small number of tech firms, which the government said had
“stifled innovation and growth across the economy”.

A new Digital Markets Unit within the CMA will be able to intervene to
prevent businesses and consumers being “unfairly disadvantaged by the biggest
players”.

“If a firm is deemed to have strategic market status in key digital
services, the DMU will be able to step in to set tailored rules on how they
behave and operate,” it added.

A threshold for this will apply to firms with a global turnover above 25
billion pounds or a UK turnover above 1 billion pounds.

Tech giants in firing line

That potentially puts global tech giants such as Meta, the parent company
of Facebook, as well as Google, Amazon, Apple and Microsoft in the firing line.

A Microsoft spokesperson told AFP: “We will be considering the content of
the bill and look forward to engaging with policy makers during its passage
through parliament.”

Meta said it was not commenting for now, Google, Amazon and Apple did not
respond immediately to requests for comment.

A second proposed law — the Online Safety Bill — is currently making its
way through parliament.

It aims to give internet users and particularly children greater protection
from exposure to pornography or harassment.

In the European Union, the Digital Markets Act, which comes into force this
year, will also target anti-competitive practices by tech giants and digital
services.

It aims to stamp out disinformation and hateful content.(AFP)