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Government urged to 'hold big tech to account' after ex-Amazon boss appointed CMA chair
Book trade bodies have expressed their concerns in a letter to Rachel Reeves, the chancellor of the exchequer, following the departure of Competition and Markets Authority (CMA) chair Marcus Bokkerink and his replacement by former Amazon executive Doug Gurr.
The Financial Times reported that the regulator was not focused on growth as much as the government expected, leading to Bokkerink being ousted from his role at the CMA. Gurr, who has also served as the director of the Natural History Museum, was appointed interim chair.
Citing the Digital Markets Unit (DMU) regime, and its role in increasing competition in digital markets, the signatories of the letter said they "are worried that the UK Government is losing sight of its commitment to robust competition enforcement of the DMU regime and the CMA’s operational independence".
The letter outlined the dangers to "sustainable and inclusive growth and innovation" if the CMA does not continue promoting competition. "In short, the DMU – and the CMA – will only be able to promote growth if they are truly operationally independent," the letter added.
With tech monopolies stronger than ever and "leveraging their dominance" in new markets, the letter called for the government to boost competition in order to unlock growth.
The letter added: "If UK businesses are finally able to compete with Big Tech firms on a level playing field, this will unlock critical investment, innovation and growth without limiting the ability of those companies to invest in the UK economy should they so choose. In fact, proper enforcement of the DMCCA will unleash growth across the UK economy."
The letter was signed by the Booksellers Association (BA), the Professional Publishers Association (PPA) and the Society of Authors (SoA), among many other companies, associations and experts voicing their concerns about this move.
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"As a signatory of the letter, the Booksellers Association is in alignment with other signatories on the importance of an independent and proactive CMA that follows through on the vital promises of holding big tech to account," a BA spokesperson said. "We share a real concern about how the appointment of a former head of Amazon UK is going to impact this aim."
The spokesperson added: "Bookshops were one of the first sectors to be impacted by the detrimental consequences of Amazon’s strategy of aggressive deep discount and marching monopolisation, and as their hold over the online and wider retail market has grown, so has the damage and erosion done to our town centres, high streets, shopping destinations and rural retailers."
"Therefore, we at the Booksellers Association urge the government to follow through on its commitment to support businesses – like bookshops – that contribute economically and culturally to local communities by investing in them and their people, and being equally unflinching in pushing for tighter regulation for those companies whose practices jeopardise the fairness of the wider retail and business ecosystem."
The Bookseller has contacted the CMA, Amazon and the chancellor of the exchequer’s office for comment.
