UK Set to Reject Big Tech Call for Antitrust Appeals Route

(Bloomberg) -- UK ministers are poised to reject Big Tech calls for greater scope to appeal against decisions made by the country’s antitrust regulator under new digital markets rules, people familiar with the matter said.

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The government plans to use the new Digital Markets Unit within the regulator, the Competition and Market Authority, to apply extra scrutiny to companies such as Alphabet Inc. and Meta Platforms Inc., and to curb their dominance. The division is expected to have powers to fine internet firms in a bid to protect consumers, and it may allow smaller companies to access the data held by bigger ones. It could lead to tech companies compensating media outlets for carrying news stories.

Under existing plans, challenges to DMU rulings would only cover whether the CMA followed the correct procedure when making its decisions. But tech companies have lobbied to be able to appeal decisions on a “full merits” basis that would include examining the regulator’s assumptions and underlying evidence also.

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Ministers, however, are set to rebuff the demands of the tech companies, because they are concerned the proposals would make it harder for smaller companies to challenge their bigger rivals, according to the people, who asked not to be named because a final decision hasn’t yet been made. Allowing appeals on full merits could also lead to a longer and more expensive judicial process, they said.

“I will listen to all the different views, and then form an evidence-based decision,” Secretary of State for Science, Innovation and Technology Michelle Donelan said on Tuesday in an interview at the Bloomberg Technology Summit in London, when asked about the matter. The Digital Markets, Competition and Consumers Bill “is designed to level the playing field and prioritize competition which is to the benefit, especially, of consumers, but also innovation.”

The bill is currently going through Parliament and will be carried over into the new session, which begins with the King’s Speech on Nov. 7. No decision has yet been made on the final wording on the appeals process, with an announcement expected within two months.

--With assistance from Anna Edwards.

(Updates with comment from cabinet minister Donelan in fifth paragraph.)

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