UK Government is set to give the CMA more power to rein in Big Tech Corporations

[Unchained]

UK regulator holding up Microsoft's Activision deal set to get new powers to rein in Big Tech

A new unit within the U.K.'s Competition and Markets Authority will be given powers to fine Big Tech firms up to 10% of global revenues for breaches.

www.cnbc.com

The U.K. government on Tuesday published a draft bill that would give a newly created division within the independent competition regulator powers to levy huge fines against Big Tech firms for competition abuses, and investigate and block acquisitions with greater speed.

The draft Digital Markets, Competition and Consumers bill will take aim at tech companies with annual revenues of at least £25 billion ($31.2 billion) globally, or £1 billion in the U.K., according to a statement.

The bill will empower the Digital Markets Unit – a new regulatory body within the Competition and Markets Authority that was created in 2020 with a mandate to promote competition and innovation in digital markets – with enhanced enforcement powers regarding Big Tech mergers and acquisitions.

That includes changes to the thresholds for mergers and fines that mean the CMA "can conduct faster and more flexible competition investigations, which identify and stop unlawful anticompetitive conduct more quickly," the CMA said in a separate statement.

The new law, which is set to be unveiled in Parliament on Tuesday, will also give the CMA the ability to impose fines of at least 10% of firms' global annual revenues on firms that breach the rules. The law hasn't yet been approved by lawmakers but is widely expected to receive cross-party support.

The CMA has been at the center of some major Big Tech crackdowns lately. The watchdog has held up Microsoft's $69 billion acquisition of video game publisher Activision Blizzard with an in-depth competition investigation. It previously ordered Facebook to divest the U.S. GIF-making platform Giphy.

Katherine Kirrage, digital competition partner at Osborne Clarke, said it's rare that a competition regulator fines a company the maximum 10% level – but it's the risk to their reputation they should worry about.

"In practice, the maximum 10% threshold is rarely reached in the competition law field and a key point will be understanding how the CMA will calculate consumer law fines," Kirrage said in emailed comments to CNBC.

 

[AshHunter216]

Looks like Microsoft's attempt to pressure the UK government into overturning the CMA's decision has backfired. Moves like this obviously show they aren't interested in helping Microsoft here.

 

[Cool hand luke]

I'm sure it feels like everyone's out to get Microsoft if you're a snivelling green rat, but if you're feeling down just remember: you're absolutely right that everyone is out to get them, and they deserve it!

 

[Dabaus]

Does the article mention anything about the likelihood of this bill passing? The timing does seem like response to Microsoft making boarder line threats to uk. If that is the case the UK seems like they’ll never allow Microsoft to make another acquisition again. Remember just a few weeks ago Xbox fanboys were fantasizing about Sony not being able to do anything because the arbitrary “high end market” definition? Looks like it’s coming true, except it’s not Sony in the cross hairs here. Talk about reverse uno card!

 

[Dabaus]

I'm sure it feels like everyone's out to get Microsoft if you're a snivelling green rat, but if you're feeling down just remember: you're absolutely right that everyone is out to get them, and they deserve it!

Microsoft behave like thugs to governments, they probably treat their tech rivals much the same way. I believe it was month or two ago nadella basically said they’re at war with google in regards to the ai space. Now google, amazon, and Apple are all complaining to the EU that Microsoft’s write unfair cloud contracts. Guess who still has a verdict on the activsion deal, that’s right, the EU.

 

[TubzGaming]

Does the article mention anything about the likelihood of this bill passing? The timing does seem like response to Microsoft making boarder line threats to uk. If that is the case the UK seems like they’ll never allow Microsoft to make another acquisition again. Remember just a few weeks ago Xbox fanboys were fantasizing about Sony not being able to do anything because the arbitrary “high end market” definition? Looks like it’s coming true, except it’s not Sony in the cross hairs here. Talk about reverse uno card!

The new law, which is set to be unveiled in Parliament on Tuesday, will also give the CMA the ability to impose fines of at least 10% of firms' global annual revenues on firms that breach the rules. The law hasn't yet been approved by lawmakers but is widely expected to receive cross-party support.

Quick Edit :

How does a bill become a law?​

Guide to the passage of a Bill​

A Bill is a proposal for a new law, or a proposal to change an existing law, presented for debate before Parliament.
A Bill can start in the Commons or the Lords and must be approved in the same form by both Houses before becoming an Act (law).

 

[Dabaus]

Man, that’s big. Sounds like it’s been in motion before Microsoft’s outburst but the new headlines certainly raises an eyebrow. I wonder if Microsoft fired brad smith after this?

 

[anonpuffs]

wow, 10% of global annual revenue! that's enormous. let's see if brad smith keeps running his dumb mouth.

 

[ethomaz]

Microsoft arrogance just made CMA stronger

 

[Darkknight2149]

More power to them.

I don't expect the corporate-run United States government bodies to follow suit, but it's great to see the UK is stepping in. This, coupled with Sony's consolidation (albeit at a much smaller scale than the Blizzard acquisition), is toxic to the industry.

This hopefully puts a damper on the general consolidation of the industry.

 

[Bryank75]

There was this view before this attempted acquisition that Microsoft was very pro regulator and engaged in a positive fashion with them....

This whole fiasco has exposed what Microsoft really think of regulators, the minute they dont get what they want, they attack, undermine, threaten etc.

When it was Sony seemingly standing up to them, they sent the media and senators after them and had their shills slander them all over the net.

Now that it is a regulator in the way, they are attacking the outcome and the position and how the CMA is elected, they are threatening the country and the people with economic and security concerns..... I mean, this is really gone way past any acceptable behavior.

If I were the CMA, I'd be talking to the Germans who are investigating MSFT's cloud business and I would open a UK investigation..... say, you weren't happy with the last outcome, so we are looking deeper into your business practices....

 

[Sircaw]

There was this view before this attempted acquisition that Microsoft was very pro regulator and engaged in a positive fashion with them....

This whole fiasco has exposed what Microsoft really think of regulators, the minute they dont get what they want, they attack, undermine, threaten etc.

When it was Sony seemingly standing up to them, they sent the media and senators after them and had their shills slander them all over the net.

Now that it is a regulator in the way, they are attacking the outcome and the position and how the CMA is elected, they are threatening the country and the people with economic and security concerns..... I mean, this is really gone way past any acceptable behavior.

If I were the CMA, I'd be talking to the Germans who are investigating MSFT's cloud business and I would open a UK investigation..... say, you weren't happy with the last outcome, so we are looking deeper into your business practices....

I have been so shocked by the way they have replied/acted, threats and fear-mongering.

These big corps are out of control, and from your little sold-my-soul shills like Colt Eastwood all the way up to politicians.

It's frightening how far their reach it..

 

[anonpuffs]

I have been so shocked by the way they have replied/acted, threats and fear-mongering.

These big corps are out of control, and from your little sold-my-soul shills like Colt Eastwood all the way up to politicians.

It's frightening how far their reach it..

I'm not shocked. This is how corporations behave, and why you should never let them have too much power.

 

[Sircaw]

I'm not shocked. This is how corporations behave, and why you should never let them have too much power.

Not for me personally, i can't remember anyone acting so brazen like this in regards to not getting their way.

To actively challenge the authority of the Cma, to tell a regulator you have no idea what they are doing is a new one for me.

 

[daniel5043]

Well atleast one benefit from brexit

 

[Yurinka]

Good, someone has to stop the big corporations with asshole behaviors.

 

[FIREK2029]

I knew this would happen the moment I saw Brad Smith and Bobby Kotick throwing temper tantrums on TV and threatening the UK/CMA.

They must think the CMA works like the FTC that they easily bully over here in the US with bribed politicians and lobbyists.


Glad to see the UK government giving them the finger. Fuck them, they deserve it.

 

[Johnic]

Just lol.

MS and their shills attack the government and the regulators to make them back off and instead they double down.

What a pathetic clown show of a company. Seriously, the difference between MS and Sony in handling this is staggering. I've never seen a company as unprofessional as MS when discussing this case. Their upper management need a few lessons in PR.

 

[Airbus]

 

[BigMclargeHuge]

It'd be cool if we did something similar in the us. I'm not going to hold my breath on it though.