Data transparency will receive a new boost from the UK government. The authorities announced that they would develop a new code for the tech companies, in order to let users better control their data.
So, a Digital Markets Unit will create, together with other regulators – Ofcom and the Information Commissioners Office, and enforce the code. This should govern the way digital platforms behave and will also apply to huge platforms such as Google and Facebook.
The data transparency code
According to the Department for Digital, Culture, Media and Sport, the new code will force companies to be more transparent regarding the way they use customer data. Also, it should make sure that consumers can make a choice regarding the personalized advertising.
The new unit, which should start working from April 2021, will be part of the Competitions and Markets Authority (CMA). Officials mentioned that it will have the power to suspend, block or even reverse tech companies’ decisions. Also, it will have the right to impose penalties for the non-compliance cases.
More concerns during the pandemic
The personal data use became an even more important issue since the COVID-19 had started. As the lockdown determined many companies to recommend home work, there was a huge rise in digital users. So, it also brought more content and more ads, following users.
Of course, big tech companies took advantage of the situation and ignored data transparency. So, Oliver Dowden, the digital secretary, mentioned that “ the concentration of power among a small number of tech companies is curtailing growth of the sector.”
Dowden added that this reduces innovation and has a negative impact on both users and businesses. Thus, he explained the steps UK decided to take in the spring.
More recent decisions seem to target huge players on the market, in different parts of the world. Australia, for instance, is in the middle of the process that would force huge tech companies share their revenues with the content makers.
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