The U.K. competition regulator said it would open investigations into at least three types of tech platforms at the start of this year to work out which tech giants need to obey a new law governing the digital economy.
The Competition and Markets Authority said Tuesday that it plans to launch its first probes this month under the Digital Markets, Competition and Consumers Act, which came into force on Jan. 1.
The DMCC gives the U.K. regulator new powers to rein in Big Tech companies and level the playing field for companies that rely on platforms like app stores and social networks to reach customers.
Under the rules, the CMA can identify technology companies it believes have a “strategic market status,” or SMS, relating to specific type of digital platforms such as app stores, browsers and online advertising.
From there, it can impose strict guard-rails on how those companies run their platforms in the U.K. That can mean banning tech groups from favoring their own products and services over those of rivals or using customers’ data to give themselves an unfair advantage over smaller players.
The watchdog said it plans to launch SMS designation investigations connected to two types of digital activity this month, and will take a short pause before opening a third probe later in the year.
Those designation investigations should be wrapped up in about nine months, the CMA said, adding that it would also consult industry players on a set of proposed conduct requirements in parallel with them. More detail is expected later this month, it said.
“The new digital markets competition regime provides a unique opportunity to harness the benefits of investment and innovation from the largest digital firms whilst ensuring a level playing field for the many startups and scale-ups across the U.K. tech sector,” Sarah Cardell, the CMA’s chief executive, said.
Write to Edith Hancock at edith.hancock@wsj.com
