New UK regulator set to curb big tech's power over news publishers

LONDON, April 7 (Reuters) - Britain's new regulator for tech
giants Facebook and Google launches on
Wednesday with an initial remit to see if a code of conduct
could improve the balance of power between the platforms and
news publishers.

The Digital Markets Unit (DMU), based in the Competition and
Markets Authority (CMA), has been set up to stop big tech
companies abusing their market dominance after the competition
regulator said existing rules were not enough.

The power and reach of big tech has grown faster than
governments' ability to keep them in check.

A row, now resolved, between Facebook and the Australian
government in February over payment for local news highlighted
the disparity.

The tech company blacked out news content in response to
planned legislation, a move condemned by publishers and
politicians in multiple countries.

Britain's Digital Secretary Oliver Dowden said he had asked
the DMU to look at how a code could govern the relationships
between platforms and content providers, such as news
publishers, to ensure they were as fair and reasonable as
possible.

"The Digital Markets Unit has launched and I've asked it to
begin by looking at the relationships between platforms and
content providers, and platforms and digital advertisers," he
said in a statement.

"This will pave the way for the development of new digital
services and lower prices, give consumers more choice and
control over their data, and support our news industry, which is
vital to freedom of expression and our democratic values."

The unit was set up after the CMA concluded last year that
Google had significant market power in search and in search
advertising, and Facebook had significant market power in social
media and in display advertising.

Britain said the unit would coordinate with international
partners that are also grappling with tech regulation.

Dowden will host digital and tech ministers in April to
discuss coordination on information sharing and joining up
regulatory and policy approaches, the government said.

The DMU is awaiting government legislation to give it the
powers it requires.
(Reporting by Paul Sandle; editing by Barbara Lewis)