The digital market supervision department promised by the British government has been established. Its responsibility is to prevent technology companies from using market dominance. However, until 2022, the department has no real power. The British government announced at the end of 2020 that it had established a digital market department and described it as a “tough new regulator” to prevent big technology companies from abusing their dominant market position.However, according to reports, DMU will need new legislation before it can start law enforcement, and it is expected that relevant laws and regulations will not be issued for at least one year.
“Today is an important milestone on the road to the creation of the world’s most competitive online market, with consumers, entrepreneurs and content publishers at its core,” UK Digital Minister Oliver Dawden said in a statement. “The digital marketing department has been launched, and I ask it to first study the relationship between the platform and content providers, and between the platform and digital advertisers.”
“This will pave the way for the development of new digital services and lower prices, giving consumers more choice and control over their own data, and supporting our news industry,” he continued. Our democratic values are crucial.”
According to the Financial Times, sources close to the UK Competition and Markets Authority said that DMU will be like a toothless tiger in a year or more. The required new legislation is expected to take such a long time because of the long time for government consultation and the large number of new laws being considered by Parliament.
This means that the establishment of the new department is in a “shadow” mode, and its 60 staff will study how the code of conduct can promote competition.The digital market department is under the CMA, and the CMA has separatelyappleThe App Store launched an antitrust investigation.