Purchasing, selling, or hosting fake reviews will become unlawful under the new legislation.
The new Digital Markets, Competition, and Consumer Bill seeks to aid consumers and increase competition among large technology companies.
The bill, which will be introduced on Tuesday, prohibits receiving money or free products in exchange for writing positive reviews.
Companies will also be required to notify individuals when their free trial subscription expires.
In addition, the law seeks to end the current market dominance of the tech giants.
Since 2021, the law has been in the making.
Its creators have stated that they intend to regulate the market dominance of a handful of large technology companies. Although none have been identified and will only be chosen after a nine-month investigation.
If the regulation applies, Chinese enterprises with headquarters will be included.
Depending on the circumstances, the newly formed Digital Markets Unit, which will be part of the Competition and Markets Authority (CMA), will be granted the authority to open up a specific market.
Thus, this could involve telling Apple to allow iPhone and iPad users to download apps from various app stores or compelling search engines to share data.
The CMA will be able to impose penalties of up to 10% of global turnover for noncompliance, depending on the violation and will not need a court order to enforce consumer law.
The EU Digital Markets Act was enacted to address comparable competition issues with large technology companies.
The Competition and Markets Authority (CMA) has demonstrated that a UK regulator can be effective when confronting what is likely to be predominantly U.S.-based titans by compelling Meta, Facebook’s parent company, to sell the graphics animation firm Giphy after determining that the acquisition would harm competition. Meta expressed displeasure, but it complied nonetheless.
Reed Smith attorney Nick Breen says the CMA’s increased powers mean “no one has the luxury of taking this lightly.”
Neil Ross of techUK expected “robust checks and balances” and an effective appeals mechanism.
The new laws we’re introducing today will give the CMA the authority to directly enforce consumer law, strengthen competition in digital markets, and ensure that people across the country keep their hard-earned money,” said Business Minister Kevin Hollinrake.
The Department of Business and Trade plans to apply the new rules as quickly as possible after parliamentary approval.
