The British government has established a regulatory agency for digital companies such as Facebook and Google. The regulatory agency will first check whether the code can improve the balance of power between digital platforms and media companies.
The Digital Marketing Department (DMU) of the Competition and Market Protection Agency was established to prevent large technology companies from attempting to abuse their dominant market position after regulators discovered that the existing regulations were insufficient.
Reuters pointed out that the power and influence of high-tech companies are growing faster than the government’s ability to control them.
The balance of power between Facebook and the Australian government in paying for local news in February revealed the outline of this task. Reuters reminded that the company responded to the announcement of the law. According to the law, the government hopes to block information content so that the media has a stronger position in negotiations.
Oliver Dowden, the secretary of the UK Digital Company, said that he has asked the newly established regulator to study how the code regulates the relationship between the platform and content creators (such as news publishers) to make it as fair and reasonable as possible .
Dawton said in a statement: “The Digital Marketing Department has been established. I have asked them to start researching the relationship between platforms and content creators and between platforms and digital advertisers.”
Government officials emphasized: “This will pave the way for the development of new digital services and lower prices, provide consumers with more choices and opportunities to control their data, and support news that is vital to freedom of speech and our democratic values. “
The department was established after the CMA concluded last year. The department believes that Google has a very large market role in search and advertising through search results, while Facebook has an important market power in the field of social networks and digital advertising.
London announced that the department will coordinate with international partners who are also trying to regulate technology companies.
The British government said that Dawton will host a digital ministerial meeting in April to discuss information exchange and coordinate regulatory methods for the issue.
The newly formed department is now waiting for a law that should precisely define its powers.