The government must avoid weakening the strength of competition regulators in their capacity to manage Big Tech, according to a Conservative peer.
Baroness Stowell, Tory peer and chair of the House of Lords Communications and Digital Committee, has written to the prime minister emphasising the importance of robust competition regulation as the Digital Markets Bill makes its way through parliament.
The letter from Stowell follows reports that the government is considering changes to the bill that would allow a broader appeals system, giving the biggest tech firms greater scope to conduct lengthy and expensive legal challenges to decisions from regulators such as the Competition and Markets Authority (CMA).
According to Stowell, the change would “undermine the fundamental purpose of the bill” and “reduce the likelihood of ensuring healthy competition in the digital economy”.
The peer claimed the amendments would “favour those with an interest in delaying regulatory intervention and give greater power to avoid scrutiny for tech firms “with the greatest resources”.
While the committee acknowledged the bill should not take an anti-Big Tech position, it warned the government must ensure proper balance by maintaining the original bill.
The Digital Markets Bill is a piece of legislation that, in its current form would give competition regulators greater authority in policing the actions of Big Tech.
The bill has drawn criticism, including from the think tank Institute of Economic Affairs (IEA), which published a report last month – endorsed by a handful of MPs – arguing the bill discourages tech companies from doing business in the UK.
“Digital markets surely are crucial for our growth and competitive forces will best drive that growth in the interests of all consumers,” said IEA.
“The CMA is the right regulator but, as this paper makes clear, the powers being delegated to the CMA are too broad, too ill-defined and too restrictive to challenge.”