Digital Competition

Debate between Baroness Bloomfield of Hinton Waldrist and Lord Clement-Jones

Tuesday 5th November 2019 Lords Chamber

[Lord Clement-Jones]

To ask Her Majesty’s Government what assessment they have made of the recommendations of the report of the Digital Competition Expert Panel, Unlocking Digital Competition, published on 13 March.

[Baroness Bloomfield of Hinton Waldrist (Con)]

My Lords, the Government welcome wholeheartedly the Digital Competition Expert Panel’s report. We have accepted the panel’s bold set of pro-competition recommendations to open up digital markets, including a new digital markets unit to protect consumers and competition, and to encourage innovation. We are carefully considering the panel’s thoughtful report and look forward to providing a response in due course.

[Lord Clement-Jones (LD)]

My Lords, it is clear that big tech platforms are gaining enormous market power, particularly in data and digital advertising. Is it not now vital that we recognise the importance of giving the Competition and Markets Authority the new powers that it needs to treat datasets as an asset over which there must be competition, and certain UK technology companies as strategically important when it comes to takeovers? Why have this Government not already set up the digital markets unit urgently, as Furman recommended, to do the necessary assessments?

[Baroness Bloomfield of Hinton Waldrist]

Until we decide where we are going to base the digital markets unit, we need to look at its functions in the round. The report of the noble Lord, Lord Tyrie, as well as the digital markets panel, will feed into the process that we are looking at. The noble Lord is quite right to raise datasets as a concern. The ownership of such things is a formidable barrier to entry, so loosening an incumbent’s grip on data and forcing companies to hand over personal data to competitors, at the request of a consumer, would indeed boost competition and consumer choice.