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Britain to Give New Tech Regulator Statutory Powers

Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls
Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls
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Britain to Give New Tech Regulator Statutory Powers

Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls
Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls

Britain will give statutory powers to a new technology regulator so it can enforce pro-competition rules and prevent tech giants including Google and Facebook from using their dominance to push out smaller firms and disadvantage consumers.

“The government will introduce legislation to put the Digital Markets Unit on a statutory footing in due course,” the Department of Culture, Media and Sport (DCMS) said in a statement on Thursday.

A spokesperson for the DCMS declined to comment when asked if legislation will be included in the government's program for the coming year, due to be outlined in the Queen's Speech on May 10.

The Digital Markets Unit (DMU) was launched in non-statutory form within the Competition and Markets Authority (CMA) last year to make sure tech companies don't abuse their market power.

The change would give the unit stronger enforcement powers, Reuters reported.

The DCMS said its proposals would make it easier for people to switch between Apple iOS and Android phones or between social media accounts without losing their data.

Smartphone users could get more choice of search engines and social media platforms and more control over how their data is used by companies.

The DCMS said small and medium-size businesses would get better pricing from big tech firms that they use to trade online. The firms would need to warn smaller companies about changes to their algorithms that drive traffic and revenues.

The proposed measures would also make sure news publishers are able to monetize their online news content and be paid fairly for it. The DMU would have the power to step in to solve pricing disputes between news outlets and platforms. App developers would be able to sell their apps on fairer and more transparent terms.

“We want to level the playing field and we are arming this new tech regulator with a range of powers to generate lower prices, better choice and more control for consumers while backing content creators, innovators and publishers, including in our vital news industry,” said digital minister Chris Philp.

The DCMS said the DMU will be able to levy fines of up to 10% of annual global turnover.

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Technology

Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
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Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP

Google-parent Alphabet on Wednesday reported quarterly profits that topped expectations, saying artificial intelligence has boosted every part of its business.

Alphabet's second-quarter profit of $28.2 billion -- on $96.4 billion in revenue -- came with word that the tech giant will spend $10 billion more than it previously planned this year on capital expenditures, as it invests to meet growing demand for cloud services.

"We had a standout quarter, with robust growth across the company," said Alphabet chief executive Sundar Pichai.

"AI is positively impacting every part of the business, driving strong momentum."

Revenue from search grew double digits in the quarter, with features such as AI Overviews and the recently launched AI mode "performing well," according to Pichai.

Ad revenue at YouTube continues to grow along with the video platform's subscription services, Alphabet reported.

Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year, according to the company.

"With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead," Pichai said.

Alphabet shares were up nearly 2 percent in after-market trades that followed the release of the earnings figures.

Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence and whether AI-generated summaries of search results will translate into fewer opportunities to serve up money-making ads.

The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age.

The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages.

However, advertising remains Google's financial bedrock.

"Google is doing well despite tariff headwinds and rising AI competition in search," said eMarketer principal analyst Yory Wurmser.

"It's also successfully monetizing AI Overviews and AI Mode, a good sign for the future."

Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Antitrust battles

Meanwhile the online ad business that generates the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.

During the summer of 2024, Google was found guilty of illegal practices to establish and maintain its monopoly in online search by a federal judge in Washington.

The Justice Department is now demanding remedies that could transform the digital landscape: Google's divestiture from its Chrome browser and a ban on entering exclusivity agreements with smartphone manufacturers to install the search engine by default.

District Judge Amit Mehta is considering "remedies" in a decision expected in the coming days or weeks.

In another legal battle, a different US judge ruled this year that Google wielded monopoly power in the online ad technology market, another legal blow that could rattle the tech giant's revenue engine.

District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers.

Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.

Google said it is appealing both rulings.