UK Planning Huge Fines for Companies Like Apple That Do Not Meet New Rules

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).

app store blue banner uk fixed
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.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

Generic iOS 18

Apple Announces iOS 18.2 Launching Today With These New Features

Wednesday December 11, 2024 5:23 am PST by
Apple has announced that iOS 18.2, iPadOS 18.2, and macOS Sequoia 15.2 will be released today following more than six weeks of beta testing. For the iPhone 15 Pro and iPhone 16 models, the update introduces additional Apple Intelligence features, including Genmoji for creating custom emoji, Image Playground and Image Wand for generating images, and ChatGPT integration for Siri. There is also ...
iphone 17 pro concept render cameras

Major iPhone 17 Pro Redesign Backed by Supply Chain Info, Claims Leaker

Thursday December 12, 2024 4:36 am PST by
Next year's iPhone 17 Pro models will reportedly feature a major redesign, specifically centering around changes to the rear camera module, and now new supply chain information appears to confirm the striking change, according to a Chinese leaker. iPhone 17 Pro concept render Late last month, The Information's Wayne Ma claimed that the rear of the ‌iPhone 17‌ Pro and ‌iPhone 17‌ Pro...
m4 mac mini hands on

Cloud-Based M4 and M4 Pro Mac Mini Models Now Available

Wednesday December 11, 2024 7:34 am PST by
Developers now have access to cloud-based M4 and M4 Pro Mac mini units via MacWeb, a Silicon Valley-based provider of cloud services. The company has launched three configurations of the new Mac mini, powered by Apple's M4 and M4 Pro chips. Developers and IT teams can rent these machines for tasks ranging from basic development to advanced artificial intelligence modeling, providing an...
macOS Sequoia Night Feature

Apple Releases macOS Sequoia 15.2 With New Apple Intelligence Features

Wednesday December 11, 2024 10:02 am PST by
Apple today released macOS Sequoia 15.2, the second update to the macOS Sequoia operating system that was released in September. macOS Sequoia 15.2 comes over a month after the release of macOS Sequoia 15.1. Mac users can download the ‌macOS Sequoia‌ update through the Software Update section of System Settings. macOS Sequoia 15.2 adds Image Playground, an app that lets you create...
macbook air m2 13 inch

macOS Sequoia 15.2 Confirms New M4 MacBook Air Models Are Coming

Wednesday December 11, 2024 10:54 am PST by
Apple today made a mistake with its macOS Sequoia 15.2 update, releasing the software for two Macs that have yet to be launched. There is a software file for "Mac16,12" and "Mac16,13," which are upcoming MacBook Air models. The leaked software references the "MacBook Air (13-inch, M4, 2025)" and the "MacBook Air (15-inch, M4, 2025)," confirming that new M4 MacBook Air models are in...
apple tv purple

New Apple TV and HomePod Mini Launching in 2025

Thursday December 12, 2024 10:39 am PST by
Apple plans to refresh both the Apple TV and the HomePod mini in 2025 as part of a major push into refreshing its smart home product offerings, reports Bloomberg's Mark Gurman. In a report on an upcoming Apple-designed Bluetooth and Wi-Fi chip, Gurman says that the chip will be introduced in a new Apple TV and HomePod mini that are "scheduled" for 2025. While there is no exact timeline...
maxresdefault

Apple Releases iOS 18.2 and iPadOS 18.2 With Genmoji, Image Playground, Siri ChatGPT and More

Wednesday December 11, 2024 10:03 am PST by
Apple today released iOS 18.2 and iPadOS 18.2, the second major updates to the iOS 18 and iPadOS 18 updates that came out in September. The new updates come over a month after Apple released iOS 18.1 and iPadOS 18.1. Subscribe to the MacRumors YouTube channel for more videos. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General >...

Top Rated Comments

Sakurambo-kun Avatar
34 months ago
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.
Score: 27 Votes (Like | Disagree)
Koudspeel Avatar
34 months ago
Apple should leave the UK market.
Score: 22 Votes (Like | Disagree)
Macropanda Avatar
34 months ago
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.

Or am I missing something?
Score: 16 Votes (Like | Disagree)
MajorFubar Avatar
34 months ago
This from a govt who can't even regulate it's own inner circle of politicians to not have a party at Number 10 during a period when the rest of us were told we would be fined if we visited our own friends and families.
Score: 9 Votes (Like | Disagree)
Moonjumper Avatar
34 months ago

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.
Score: 9 Votes (Like | Disagree)
Patchwork Avatar
34 months ago
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.
Score: 7 Votes (Like | Disagree)