PA welcomes government's 'firm commitments' around digital regulation in Queen's speech

The Publishers Association (PA) has welcomed the government’s “firm commitments” around digital regulation, announced in the Queen’s speech on Tuesday (10th May).

The government revealed draft legislation to “promote competition, strengthen consumer rights and protect households and businesses” alongside measures “to create new competition rules for digital markets and the largest digital firms”. 

The government said the purpose of the draft bill was to “boost competition by introducing a new regime to address the far-reaching market power of a small number of very powerful tech firms”. This would empower the Digital Markets Unit “to designate a small number of firms who are very powerful in particular digital activities, such as social media and online search, with Strategic Market Status” which will “lead to these firms facing legally enforceable rules and obligations to ensure they cannot abuse their dominant positions at the expense of consumers and other businesses”.

The draft bill also promises to give the Digital Markets Unit “powers to proactively address the root causes of competition issues in digital markets” by imposing “interventions to inject competition into the market, including obligations on tech firms to report new mergers and give consumers more choice and control over their data”. 

Stephen Lotinga, chief executive of the PA, said: “The firm commitments set out in today’s Queen’s speech around digital regulation are hugely important and to be welcomed by the publishing industry. As we have been consistently highlighting, this was a vital opportunity for the government to give the Digital Markets Unit at the Competitions and Markets Authority the power and the teeth it needs to do its job and the only way to ensure fairness in negotiations between tech platforms and their suppliers.

“We are delighted that this has been recognised by the Secretary of State for DCMS and those in government involved in developing this work and highlighting its importance. Its inclusion today demonstrates a keen understanding of the vital nature of this issue, not to mention bravery in standing up to the significant might of tech platforms. It also shows a regard for the value of our industry and a firm will to secure its future success.” 

Nigel Newton, president of the PA and chief executive of Bloomsbury Publishing, added: “In my inaugural speech as president of the Publishers Association’s two weeks ago, I made clear how important it is for our industry that the government restrains tech platforms through legislation now. Otherwise, publishing’s future would be at risk. Having a world-leading tech sector requires world-leading regulation. 

“I am absolutely delighted that Nadine Dorries and the government have listened to our concerns by including the Draft Digital Markets, Competition and Consumer Bill in the Queen’s Speech and I look forward to the industry following its principles after the publication of the draft and next year to its passage into law.”