Digital Markets Unit risks stifling investment and innovation
Julian Jessop quoted in The Times
“The Digital Markets Unit will have extraordinary powers to direct business operations and relationships with third parties. Companies could be forced to ask for permission before launching products or required by the regulator to modify features in ways that undermine user privacy. These interventions risk making the UK a hostile place to invest and innovate.
“Digital markets are highly dynamic, competitive and unpredictable. This can be seen from the downfall of MySpace to the recent rise of ChatGPT challenging Google and TikTok challenging Facebook. The largest companies spend tens of billions on research and development and employ thousands of people in the UK. The Competition and Markets Authority already has extensive powers and the case for more is weak.”
Notes to Editors
- In July 2022, the IEA published Powering Up: How will the Digital Markets Unit affect competition and innovation? by Victoria Hewson and Dr Cento Veljanovski.
- In February 2023, the IEA published Breaking the News? Should digital platforms be required to fund news publishers? by Matthew Lesh
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