Big tech companies in the UK will be subject to stricter competition laws.

In the UK, more competition regulations are expected as the government considers new laws aimed at bolstering regulatory authority over certain corporations.

According to new regulations proposed on Tuesday, the Competition and Markets Authority (CMA) would have the authority to penalise businesses up to 10% of their annual revenue if they, for example, exploit their scale to stifle competition or unjustly charge customers.

The new regulations will target corporations with a global revenue of £25 billion or a British turnover of £1 billion, with the CMA allowed to customise restrictions to particular businesses.

"Digital markets offer huge benefits, but only if competition enables businesses of all shapes and sizes the opportunity to succeed," CMA CEO Sarah Cardell stated.

Companies will be granted "strategic market status" by the CMA, which will then establish guidelines prohibiting their size and influence from being exploited to outperform smaller businesses.

Users will also benefit from improved protection against "fake reviews, subscription traps, and pressure selling," thanks to the CMA's new authority to determine if legal requirements have been breached without having to take cases to court.

According to the government, £1.6 billion is spent annually on these "subscription traps," which the law will stop by requiring businesses to make it simpler to opt out of payments.

The legislation comes after the European Union took a similar step in 2017. However, the UK's action is not likely to be approved for some months.

(investing.com, proactiveinvestors.co.uk)