With the new bill, the Digital Markets Unit (DMU) — which is a part of the Competition and Markets Authority (CMA) — will have the power to impose added obligations on Big Tech companies, be able to enforce consumer law rather than going through court processes, and fine Big Tech firms up to 10% of their global turnover if they fail to comply.

Specifically, under the current draft of the sweeping legislation, those in key digital services with “strategic market status” — firms with a global turnover above £25 billion, or UK turnover above £1 billion — can be tasked by the DMU to follow targeted rules on how to behave and operate.

The Department of Business and Trade has outlined that the DMU may demand such companies to provide consumers with greater flexibility when buying products digitally, or to break down unnecessary barriers that prohibit users from using products on other devices and systems, thereby giving consumers more choice, for instance.

Further, such firms may be instructed by the DMU to open up their data to rival search engines, or to increase transparency regarding how app store or marketplace review systems work in practice, for example, as to promote fairer competition for startups and smaller businesses.

Another focus of the bill is fake reviews, banning the practice of facilitating fake reviews as well as advertising consumer reviews that aren’t checked by the firm to be genuine.

Subscription traps are also being targeted, with suggested rules to help consumers exit subscriptions more efficiently and effectively, and adding requirements for businesses to send reminders to customers when a trial or introductory period is soon to end.

As a draft, the bill can only come into effect following parliamentary approval, and is also subject to secondary legislation and the publication of guidance.

“Smartphones and online shopping have profoundly changed the landscape for businesses, consumers and the foundations of a modern thriving economy, which now lie in strong consumer choice, confidence and competition,” said Business and Trade Minister Kevin Hollinrake.

“From abuse of power by tech giants, to fake reviews, scams and rip-offs like being caught in a subscription trap — consumers deserve better. The new laws we’re delivering today will empower the CMA to directly enforce consumer law, strengthen competition in digital markets and ensure that people across the country keep hold of their hard-earned cash.”

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Sarah Cardell, Chief Executive of the CMA, also commented, saying: “This has the potential to be a watershed moment in the way we protect consumers in the UK and the way we ensure digital markets work for the UK economy, supporting economic growth, investment and innovation.

“People rely on free and fair markets to get the best deal possible, but also expect that rules are in place to protect them when things go wrong. Proposals to give the CMA stronger enforcement powers when firms break consumer law – including the ability to directly impose fines for the first time – are crucial to ensure we can continue cracking down on rip-offs and underhand deals, helping to deter firms from taking advantage of people.

“Digital markets offer huge benefits, but only if competition enables businesses of all shapes and sizes the opportunity to succeed. This bill is a legal framework fit for the digital age. It will establish a tailored, evidenced-based and proportionate approach to regulating the largest and most powerful digital firms to ensure effective competition that benefits everyone.

“We look forward to supporting this bill as it passes through the legislative process and stand ready to use these new powers once approved by Parliament.”