The UK has paved the way for Australia-style payments to news publishers from tech giants as the Digital Markets, Competition and Consumers Bill was passed by Parliament.
The legislation was rushed through on Thursday in the “wash-up” process following the calling of a UK general election on 4 July.
The law will enable tech companies such as Google, Facebook, Apple and others to be given “strategic market status” and be regulated by the Digital Markets Unit (a division of the Competition and Markets Authority).
The DMU could compel tech companies to pay for the news content which appears on their platforms and will work to establish codes which ensure companies serve the best interests of consumers. It will have the power to fine tech companies 10% if annual turnover if they abuse their market positions.
How could Digital Markets Bill change behaviour of tech giants?
The DMU will also be tasked with ensuring the tech giants:
- “trade on fair and reasonable terms
- “have effective processes for handling complaints by and disputes with users or potential users”
- “provide clear, relevant, accurate and accessible information about the relevant digital activity to users or potential users”
- “give explanations, and a reasonable period of notice, to users or potential users of the relevant digital activity, before making changes in relation to the relevant digital activity where those changes are likely to have a material impact on the users or potential users”
- “present to users or potential users any options or default settings in relation to the relevant digital activity in a way that allows those users or potential users to make informed and effective decisions in their own best interests about those options or settings.”
Google, for instance, could be required to give notice to publishers of significant changes to its search algorithm.
A tech platform that falls under the bill would also be prevented from “applying discriminatory terms, conditions or policies to certain users” and from using its position “to treat its own products more favourably than those of other undertakings”.
As the Bill completed its progress through the House of Lords, Labour frontbencher Baroness Jones of Whitchurch said: “Overall, it’s a good Bill, and it does take the first steps on regulating the behaviour of the big tech companies, which is long overdue.”
Business minister Lord Offord of Garvel said: “This Bill will be vital in driving growth, innovation and productivity and protecting consumers.”
Passing of Digital Markets Bill welcomed by UK publisher organisations
The News Media Association, which represents UK national and local newspaper publishers, welcomed news that the bill has been passed.
“The passage of the Digital Markets, Competition and Consumers Bill marks a very important milestone in addressing market failure in the digital economy, and ultimately delivering a level playing field between publishers and platforms,” NMA chief executive Owen Meredith said.
“Once Royal Assent is granted, the Competition and Markets Authority will have the tools it needs to make a real difference. I hope they move swiftly to make use of those powers to deliver for consumers and businesses. We look forward to working with the CMA as they move ahead with implementation to unleash the full power of the UK’s digital economy.
“The CMA must prioritise designation of firms and services where harms have the greatest societal impact, and the new regime must empower news publishers to reap fair reward for their investment in news – helping to secure a sustainable future for trusted independent UK journalism for many years to come.”
Sajeeda Merali, chief executive of the PPA which represents many specialist and magazine brands, said: “After a long period of campaigning on behalf of PPA members and positive engagement with key Members of both the House of Commons and the House of Lords, the PPA is pleased to see this Bill complete its passage ahead of the dissolution of parliament.
“The new powers it will give the CMA will foster a competitive digital economy and address the market dominance of large tech platforms. The commercial growth this will bring for specialist publishers will benefit society as consumers will continue to access the incredible content our members provide. Magazine media is a pillar of our cultural fabric and plays an important societal role, uniting people around their interests and passions.
“We are grateful for the advocacy and co-operation from MPs and Lords in this process and the PPA will continue to work with civil servants, regulators and the next Government as we progress to implementation of the Bill.”
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