UK watchdog will have power to impose huge fines on big tech firms

A new tech watchdog will be given the power to impose multibillion-pound fines on major firms such as Google and Facebook if they breach rules designed to protect consumers and businesses.

The Digital Markets Unit (DMU) will protect small businesses from predatory practices and will give consumers greater control over how their data is used, the government said.

Tech companies will be required to inform businesses of significant changes that would affect them, such as algorithm adjustments that steer traffic away from certain sites. The unit will also be given the power to resolve disputes between tech platforms and news providers, so that publishers are paid fairly for their content. App developers will also be able to sell their apps on fairer and more transparent terms, the government said.

The online safety bill also carries the threat of criminal prosecutions for tech executives for offences such as hampering an Ofcom investigation. The government said that under the DMU senior company managers will face civil penalties if their businesses do not engage properly with requests for information.