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

iPhone 17 Slim Feature

'iPhone 17 Air' With 'Major' Design Changes and 19-Inch MacBook Detailed in New Report

Sunday December 15, 2024 9:47 am PST by
Apple is planning a series of "major design" and "format changes" for iPhones over the next few years, according to The Wall Street Journal's Aaron Tilley and Yang Jie. The paywalled report published today corroborated the widely-rumored "iPhone 17 Air" with an "ultrathin" design that is thinner than current iPhone models. The report did not mention a specific measurement, but previous...
Generic iOS 18

Apple Releases First Betas of iOS 18.3 and iPadOS 18.3

Monday December 16, 2024 10:06 am PST by
Apple today seeded the first betas of upcoming iOS 18.3 and iPadOS 18.3 updates to developers for testing purposes, with the software coming a week after Apple released iOS 18.2 and iPadOS 18.2. iOS 18.3 and iPadOS 18.3 can be downloaded from the Settings app on a compatible device by going to General > Software update. There's no word yet on what's included in iOS 18.3 and iPadOS 18.3, ...
Magic Mouse Next to Keyboard

Apple 'Working' on Redesigned Magic Mouse With a Long-Awaited 'Fix'

Sunday December 15, 2024 8:43 am PST by
Apple is working on a redesigned Magic Mouse that will address some "longstanding complaints," according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said Apple in recent months has been working on a "full overhaul" of the Magic Mouse with a design that "better fits the modern era." However, he does not expect the new Magic Mouse to be released in the "next 12 to 18...
AirTag 2 Mock Feature

AirTag 2 Expected to Launch Next Year With 'Considerable' Upgrade to Item Tracking

Sunday December 15, 2024 2:57 pm PST by
Apple plans to release a second-generation AirTag next year with "considerably" longer range for item tracking, according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman said the new AirTag will use Apple's second-generation Ultra Wideband chip, or equivalent technology. The chip debuted last year in the iPhone 15 and the Apple Watch Ultra 2, and Apple said it offers up...
apple tv 4k yellow bg feature

New Apple TV Rumored to Launch Next Year With These Features

Tuesday December 17, 2024 9:02 am PST by
The current Apple TV 4K was released more than two years ago, so the streaming device is becoming due for a hardware upgrade soon. Fortunately, it was recently rumored that a new Apple TV will launch at some point next year. Below, we recap rumors about the next-generation Apple TV. Bloomberg's Mark Gurman last week reported that Apple has been working on its own combined Wi-Fi and...
Apple TV 4K hero 221018 feature

Here is Everything New for the Apple TV in the tvOS 18.3 Update So Far

Tuesday December 17, 2024 6:25 am PST by
Apple on Monday seeded the first tvOS 18.3 beta to developers for testing. The update will likely be released in January. So far, there are only minor changes for the Apple TV, with one new feature and a few code changes discovered. Below, we outline what is new in tvOS 18.3 so far. Robot Vacuum Support in Home App First, tvOS 18.3 will add robot vacuum support to the Home app on the...
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...

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)