Competition watchdog criticizes Sunak over plans to slash powers of big tech companies

CMA chief Sarah Cardell says there is “no reason” to weaken planned new powers to regulate big tech companies. Photo: Betty Laura Zapata/Bloomberg

The UK's top competition regulator has criticized Rishi Sunak following reports that the prime minister wants to limit the agency's powers.

Sarah Cardell, chief executive of the Competition and Markets Authority (CMA), said there was “no reason” to weaken planned new powers to regulate big tech companies.

Mr Sunak is said to be leading a campaign to allow companies such as Microsoft to stifle the watchdog with red tape.

Under initial proposals, the government wants to create a new unit, the Digital Markets Unit (DMU), which would give the CMA the power to fine companies such as Google and Facebook billions of dollars for breaching oversight rules. .

However, earlier this month the Mail on Sunday reported that Downing Street wants to introduce new powers to appeal against CMA rulings in the upcoming Digital Markets, Competition and Consumers Bill.

Proposes to allow big companies to bind CMA in They say that costly and time-consuming legal appeals follow a lobbying campaign by big tech companies to water down the new law.

The watchdog has broad powers to order merging companies to sell off parts of their businesses or block buyouts altogether if it believes consumers will subsequently face higher prices.

Ms Cardell said: “We have looked at the original proposals contained in the legislation and believe that this original design is a very good one to support the new regime.

“This strikes the right balance between allowing businesses to engage flexibly and constructively and, of course, holding the CMA to account.”

“We therefore see no reason to water down any of these proposals.

“We believe it is absolutely important that any changes made preserve the strength of the regime and our ability to quickly address competition concerns.”

Ms Cardell's comments come after the CMA forced Microsoft to make concessions over its $69bn (£54bn) takeover of Call of Duty publisher Activision Blizzard this week.

The buyout, the largest technology deal in history, was blocked by regulators until Microsoft agreed to a key concession.

Faced with a choice: walk away from the deal or give up the cloud streaming rights to Call of Duty and other best-selling titles to Activision, the American major technology company has given up.

Rival Game publisher Ubisoft will now control the streaming rights to Call of Duty.

The watchdog feared Microsoft could dominate the potentially lucrative cloud streaming sector unless it intervenes.

A government spokesman declined to confirm whether the Digital Markets, Competition and Consumers Bill, currently before Parliament, would be watered down.

“We will continue to work closely and engage with regulators as we move this bill forward,” he said.