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Following reports that the UK government had dropped plans to heavily regulate Apple and other big tech companies using a new Digital Markets Unit (DMU), the Department of Culture, Media and Sport (DCMS) has assured that it will empower the DMU with statutory powers to penalize firms that do not meet its rules (via Reuters).

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The government announced plans to set up the DMU in 2020, stating that it would grant powers to the body to create a code of conduct that big tech companies have to abide by in the UK or face fines of 10 percent of annual turnover. An interim report published by the Competition and Markets Authority (CMA) earlier this year was intended to focus the DMU's attention, and it was met with an aggressive response from Apple.

While the DMU currently exists with around 60 members of staff, it has no powers beyond the CMA's existing capabilities. The DMU is currently working on a number of investigations, including into the terms of Apple's App Store and Apple and Google's "duopoly" over mobile ecosystems. A government spokesperson yesterday confirmed that the DMU will be given powers to address the "predatory practices" of some big tech companies with the aim of boosting competition and giving users more control.

The DCMS's proposals include provisions to make it easier for users to switch between iOS and Android, and give users more control over search engines and how their data is used. App developers would be able to distribute their apps "on fairer and more transparent terms." There are also plans to give small and medium-sized businesses better pricing from services offered by big tech companies, as well as insights into the algorithms that drive traffic and revenues. Digital minister Chris Philp said:
The dominance of a few tech giants is crowding out competition and stifling innovation... We want to level the playing field and we are arming this new tech regulator with a range of powers to generate lower prices, better choice and more control for consumers while backing content creators, innovators and publishers, including in our vital news industry.

The DMU will be able to fine companies that break its code of conduct 10 percent of their annual global turnover, with an extra five percent of daily global turnover added per day that the violation continues. In Apple's case, this could quickly reach fines of tens of billions of dollars if it is found to have broken the DMU's rules. Senior managers could also face civil penalties if their companies are deemed to have not engaged properly with requests for information.

A spokesperson for the DCMS declined to comment on if legislation to empower the DMU will be included in this year's Queen's Speech, which sets out the government's agenda for the coming year. It is still unclear when exactly the powers will come into force, with the government simply saying that the necessary legislation will come "in due course."

Apple's ecosystem is increasingly coming under intense scrutiny by governments around the world, including in the United States, Japan, South Korea, the European Union, and more, with a clear appetite from global regulators to explore requirements around app store policies, app sideloading, and interoperability.

Article Link: UK Planning Huge Fines for Companies Like Apple That Do Not Meet New Rules
 
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Sakurambo-kun

macrumors 6502a
Oct 30, 2015
571
668
UK
Bizarre how when we (UK citizens) were in the warm embrace of the EU family the Conservatives endlessly moaned about how the EU over regulates business. Now we're out in the cold they... endlessly regulate business. They're even now talking about forcing Netflix etc and TV manufacturers co promote UK content over everything else, which sounds just a few steps away from China, Saudi Arabia, Iran etc.

I guess that's what happens when you elect economically illiterate authoritarian populists who haven't got a clue and are floundering in the polls.
 

Moonjumper

macrumors 68030
Jun 20, 2009
2,740
2,908
Lincoln, UK
Apple should leave the UK market.
Apple are doing well here, so I don't see them leaving, but for companies where the profit margins are slim, these draconian regulations (this isn't the only UK example) will drive them away, and it will stop new entrants to the market.

Also, I can see Apple delaying new services to ensure they are compliant, and the same for many other companies.

The Conservatives are doing everything to shun the world, but seem surprised the UK is getting shunned by the world as a result.
 

bsolar

macrumors 65816
Jun 20, 2011
1,490
1,598
How can one country decide to fine a company 10% of their global annual turnover? That just ridiculous.
what if 11 countries did that? 10% of their UK turnover is much more realistic.

That's because a multinational company can structure itself in a way to avoid or significantly reduce the regulator's ability to affect them otherwise.

In general in EU regulations what is considered is the "undertaking", which includes not only the actual company operating in the member state but potentially whatever entity can exercise control over it, usually a parent company.

Also note that the regulator has to use the global turnover to establish the "maximum" fine possible, but has to evaluate the actual fine on a case-by-case basis on the principles of effectiveness, proportionality and dissuasive power.
 

Morgenland

macrumors 65816
May 28, 2009
1,476
2,204
Europe
Have we as Apple customers suffered this badly from Apple? Didn't Apple first pave the way so that we no longer had to buy stupid CDs, or rent BlueRays. Apple paved the way, there were competitors quickly, as enforced by law. What is the Undefined Kingdom trying to achieve now? I have always been happy with what Apple has given me. Simplicity, security, privacy.

I don't like these 'fair' guys who want to question that in a morbid and obdurate way.
 
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FastLaneJB

macrumors regular
Jun 3, 2008
188
243
i doubt this will get very far, the UK simply hasn’t got the resources to take on the big tech firms. It also risks damaging agreement of a trade deal with the USA, a big target for the current UK government.
A trade deal with the US is smoke and mirrors. The US isn’t all that interested in it from what I can see even though we have a “special relationship”.

It’s interesting reading these articles on the EU and here the UK with some people saying they should exit these markets. These are massive markets for Apple but Americans are also missing that the US government is also looking into similar regulation of big tech. If Apple exit all these markets that want to regulate them they might as well move to China as it’ll be their only major market left.

Anyway cannot say I agree with everything here but ultimately all governments want to do for the most part is turn the phone into a computer. You can install software from anywhere on MacOS / Windows. MacOS has stayed pretty malware free and if you stick to just installing from the store you should be pretty safe overall. Phones are now major computing platforms so why should they not be as open?

For the most part I think this is good and with so many major markets now looking for similar changes, Apple won’t have any choice. The writing is on the wall here and I’d bet Apple are already working on iOS updates in secret to support this. I’d not expect them to roll it out until forced but let’s see what they announce at WWDC if that contains some steps towards more opening up.
 

erikkfi

macrumors 68000
May 19, 2017
1,551
7,272
This is directly a consequence of Apple paying the Dutch regulators' fines without complaint. Remember all those comments of, "this is just pocket change to Apple!"

Ignore these fines for a few weeks and see what happens.
 

Cartoonkid

macrumors 6502
Apr 29, 2009
369
222
The DCMS's proposals include provisions to make it easier for users to switch between iOS and Android, and give users more control over search engines and how their data is used. App developers would be able to distribute their apps "on fairer and more transparent terms." There are also plans to give small and medium-sized businesses better pricing from services offered by big tech companies, as well as insights into the algorithms that drive traffic and revenues.

Honest question: Is it actually hard to switch from iOS to Android or vice versa? I've never tried nor do I know anybody that has switched platforms.

But if they're going to go to that extent, are they also going to make it easier to switch between Windows, MacOS, Chrome and Linux? I mean, why stop at phones? Let's dumb-down the entire computing world! And while they're at it, they should mandate that all shoes be slip-ons because it might be hard for people to go from slip-ons to velcro (kids and seniors' shoes) to shoe laces.

As for forcing companies to give preferred pricing to small and medium-sized companies, that's pointless. Large companies will just create shell companies with fewer employees and less revenue to get preferred pricing. This happens frequently in the minority and diversity supplier space in the IT industry.
 

DB2k

macrumors regular
Feb 15, 2007
165
56
Well Nadine dorres doesn't know how Channel 4 is funded, doesn't know what a stock photo is and frankly, doesn't seem to know squat about literally anything she's supposed to be in control of so I fully expect this to die a death, or go completely the wrong way and we'll have no more apple or anything nice in the uk market any more
 

Morgenland

macrumors 65816
May 28, 2009
1,476
2,204
Europe
This is directly a consequence of Apple paying the Dutch regulators' fines without complaint. Remember all those comments of, "this is just pocket change to Apple!"

Ignore these fines for a few weeks and see what happens.
If these completely detached regulators want to fight whatever, ignore the law would be a trial of strength in which Apple could only win if Apple customers actively opposed the government. Will something like this ever happen in the uk?
 
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jav6454

macrumors Core
Nov 14, 2007
22,303
6,256
1 Geostationary Tower Plaza
Bizarre how when we (UK citizens) were in the warm embrace of the EU family the Conservatives endlessly moaned about how the EU over regulates business. Now we're out in the cold they... endlessly regulate business. They're even now talking about forcing Netflix etc and TV manufacturers co promote UK content over everything else, which sounds just a few steps away from China, Saudi Arabia, Iran etc.

I guess that's what happens when you elect economically illiterate authoritarian populists who haven't got a clue and are floundering in the polls.
Indeed, the UK in that sense did an absolute backwards move.

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