UK may fine big tech 10% of revenue for intentional rules breach - report

Tuesday, 08. December 2020 13:55

The United Kingdom's Competition and Markets Authority (CMA) could hit large technology companies with fines of up to 10% of their global revenue if they are found to intentionally breach a new code of conduct, the Financial Times reported on Tuesday citing CMA's plans.

"For the system to be enforceable ... you need a carrot and a stick and the stick needs to be serious penalties that make it into the boardroom of large companies," CMA CEO Andrea Coscelli stated.

Under the new rules, some tech companies could be given a "strategic market status" and thus forced to adhere to the new rules if they have "substantial, entrenched market power in at least one digital activity." The CMA noted Google and Facebook are the first ones that are likely to be branded as "strategic" and noted Amazon and Apple could also receive the status in the future.

Related Links: Amazon.com Inc.Apple Inc.Facebook Inc.Alphabet Inc.
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Breaking the News / NP