Britain can become tech hub if it reins in giants says Spotify's boss
Britain can become a major tech hub… if it reins in giants, says Spotify’s boss
- Daniel Ek has praised the Digital Markets, Competition and Consumers Bill
- Legislation seeks to create more competition by curbing powerful companies
Britain can become a world-leading technology hub if it passes a law limiting the power of internet giants, the founder of Spotify says.
Daniel Ek, the Swedish founder of the music streaming service, writes in the Mail in praise of the Digital Markets, Competition and Consumers Bill.
The legislation, which is passing through Parliament, seeks to generate more competition in online tech by curbing the power of companies such as Apple and Google.
Mr Ek, who founded Spotify in 2006, said it will ‘redefine how businesses can compete, grow and thrive on the internet – cementing the UK as a hub for innovation and an incubator for technology firms’.
The billionaire, 40, added: ‘The Bill ensures that companies like Apple will have to compete fairly for consumers’ business.’ He said the problem is that these firms built and still control the operating systems within which other competitors sell their products.
Apple’s iOS operating system and its App Store are particularly dominant on mobile phones – ‘the main way most people access the internet’. He added: ‘While Apple has long been unwilling to share any detailed breakdown of its App Store profits, all indications point to the fact that it has generated at least $100billion thanks to the high 30 per cent tax it imposes on innovators here in the UK and around the world.
Daniel Ek, the Swedish founder of the music streaming service, writes in the Mail in praise of the Digital Markets, Competition and Consumers Bill
Mr Ek, who founded Spotify in 2006, said it will ‘redefine how businesses can compete, grow and thrive on the internet – cementing the UK as a hub for innovation and an incubator for technology firms’ (Stock Image)
‘How many more startups would have succeeded and grown into successful businesses if Apple wasn’t extracting this rent and reaping massive rewards at the expense of the broader tech economy?’ Mr Ek added: ‘It makes me wonder whether launching a venture like Spotify would even be feasible today. My guess is no.’
He urged MPs to hold firm and pass a ‘robust’ version of the Bill, in the face of ‘intensive lobbying from Apple to either kill the bill or water it down, rendering it essentially ineffective’. The lobbying has targeted, among other measures, a proposed change to the process for appealing against decisions taken by the new ‘Digital Markets Unit’ (DMU) – the watchdog that would have the power to fine the tech giants.
Big tech firms want to change the appeals system for the DMU’s decisions from a quick judicial review process to a full ‘merits-based appeal’, which smaller companies fear would bog down the DMU in lengthy and expensive court battles.
News publishers and consumer rights groups are among those resisting such a watering down of the legislation.
Mr Ek said: ‘It’s crucial the Government passes a strong Bill, giving consumers greater choice and control over their digital lives … If you are expecting these big tech companies to step up and simply do the right thing, that’s not going to happen.’
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