Weakening CMA powers will undermine efforts to crack down on big tech companies, Sunak's Lords warn

Baroness Stowell of Beeston, the Conservative chair of the House of Lords Communications and Digital Committee, has warned against undermining regulatory efforts. Photo: Dan Kitwood/Getty Images

Rishi Sunak must resist weakening powers to crack down on big tech companies despite fierce opposition from industry executives, colleagues have warned.

Baroness Stowell of Beeston, the Conservative chair of the House of Lords Communications and Digital Committee, said tech companies should not «undermine» plans to expand regulatory powers.

Her comments on behalf of the committee come amid growing speculation around the upcoming Digital Markets, Competition and Consumer Bill, which will define powers to regulate big tech companies.

The bill would give the so-called Digital Markets Unit, part of the Competition and Markets Authority (CMA), the power to impose potential fines worth billions of pounds. .

However, reports have emerged that the Prime Minister wants to limit the agency's powers.

In a letter seen by The Telegraph, Baroness Stowell said colleagues on the digital committee were “concerned by reports that the government is considering changes” that “risk undermining the core purpose and value of the bill.”

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The long-awaited bill would give the CMA the power to force big tech companies to comply with a code of conduct requiring them to deal fairly with news publishers or smaller rivals.

The CMA had previously suggested this could include «reasonable compensation» to newspapers from the tech giants.

Tech companies are pushing for changes to the upcoming Digital Markets, Competition and Consumer Bill that will change how CMA decisions are appealed.

Existing plans call for a similar process. judicial review, which advocates say will be swift and balanced.

The tech industry wants a more extensive and time-consuming appeals process, which will inevitably be more expensive.

Baroness Stowell said such changes would “benefit those interested in delaying regulatory intervention” and shift the balance of power towards tech giants “with the most resources.”

CMA chief executive Sarah Cardell said it was vital the watchdog could «address competition issues in a flexible way». Photo: Al Drago/Bloomberg

Sarah Cardell, chief executive of the CMA, said earlier this week there was “no reason” to weaken planned new powers to regulate big tech companies.

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

In a separate letter, a group of publishing trade groups backed by Which?, a consumer campaign group, and technology company Skyscanner, also wrote to Mr Sunak, urging him not to weaken his regulatory powers.

The groups said: “Ultimately, slow and ineffective enforcement will leave innovative UK challenger firms at a competitive disadvantage internationally, with the CMA unable to act quickly enough to address the lack of competition in key digital markets.” and is likely to slow down investment in UK start-ups.

“Any changes to this legislation, proposed by just a handful of big tech companies, risk undermining the full potential benefits of this legislation for growth and investment in the UK tech sector.”< /p>

In submissions to the UK House of Representatives Lords Committee, technology companies warned the new bill would give the CMA significant new powers and undermine future investment.

Apple, the $2.7 trillion tech giant, told colleagues that the bill would give the CMA a «broad, subjective approach». authorities without sufficient guardrails” and risked “holding back investment.”

Amazon also warned that the new law could have “implications for investment, innovation and ultimately consumers.”

A government spokesman said: “The Digital Markets, Competition and consumers will stimulate innovation.» , grow the economy and deliver better outcomes for consumers.

 “It will increase competition, allowing it to actively stimulate more dynamic markets, ensuring the biggest tech companies treat consumers and businesses fairly while improving competition rules.”

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