The United Kingdom is set to abandon its plans to regulate Apple and other massive tech companies using a new competition authority.
UK to Abandon Plans to Regulate Tech Companies
According to the Financial Times, the British government's new legislative agenda will not include a bill to empower the Digital Markets Unit or DMU because of the set out in the Queen's Speech next week.
The UK government announced plans to set up the DMU back in 2020, stating that it would grant powers to the body to create a code of conduct that massive tech companies have to abide by in the UK or face fines of up to 10% of its annual turnover, according to MacRumors.
An interim report published by the Competition and Markets Authority (CMA) in early 2022 was intended to focus the DMU's attention. It was met with an aggressive response from Apple and other tech giants.
Although the DMU has more than 60 members of staff, it has no control and power beyond the CMA's capabilities.
The DMU is currently working on several investigations, including into the terms of Apple's App Store and Apple and Google's "duopoly" over mobile ecosystems.
Julian Knight, Conservative chair of the House of Commons Digital, Culture, Media and Sport Select Committee, said that the legislation is not included in the Queen's Speech, it would affect the credibility of the enterprise and it would also affect the capability of the U.K. to regulate the tech sector.
A statement from the Department for Digital, Culture, Media, and Sport (DCMS) to the Financial Times suggested that powers to change the conduct of the most influential tech firms and protect businesses and consumers are still on the way, but it could not comment on timelines for legislation in the future.
Apple's ecosystem has faced criticism from governments around the world, including Japan, South Korea, the United States, and the European Union.
In 2021, the U.K. watchdog questioned Apple on how it gets the data of its users.
EU's Accusations
Even though the UK government has backed out of monitoring Apple and other tech companies, the EU is still pushing for strict laws against the tech giants.
Europe's antitrust regulator recently accused Apple of restricting rivals' access to its payment technology, forcing it to change how the tech giant's system works and open it up to a hefty fine.
The European Commission said in a press release on Tuesday, May 3, that it had informed Apple of its preliminary view that it abused its dominant position in markets for mobile wallets on iOS devices.
According to CNBC News, the statement of objections the commission delivered to Apple outlines the suspected violations of Europe's antitrust rules, but it does not necessarily determine the outcome of the investigation. Apple will still have the chance to review and respond to the commission's findings.
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