Mark Zuckerberg threatened to pull Facebook’s investment from the UK in a private meeting with Matt Hancock, the Bureau of Investigative Journalism has revealed.

Minutes from a meeting in May 2018 show that Zuckerberg spoke of an “anti-tech UK government” and joked about making the UK one of two countries he would not visit.

The revelation comes as the Competition and Markets Authority (CMA) announces plans to create a legally binding code of conduct, tailored to each of the Big Tech firms, including Facebook.

According to the Bureau, at the meeting Hancock seemed eager to please and offered “a new beginning” for the government’s relationship with social media platforms.

The then secretary of state for digital, culture, media and sport offered to change the government’s approach from “threatening regulation to encouraging collaborative working to ensure legislation is proportionate and innovation-friendly.”

The meeting, which took place at the VivaTech conference in Paris, appeared to have been arranged after “several days of wrangling” by Matthew Gould, the former culture department civil servant.

The meeting came just days after Hancock publicly criticised Zuckerberg for dodging a meeting with MPs.

The Bureau of Investigative Journalism has said that civil servants had to give Zuckerberg explicit assurance that the meeting would be positive and Hancock would not simply demand he attend the committee, and noted that the meeting began with an ambience of “guarded hostility”.

Details of the meeting can finally be revealed after a two-year battle that culminated in the Information Commissioner’s Office ordering the department to release the minutes.

The minutes represent the first public airing of Mark Zuckerberg’s views regarding the UK’s proposed legislation on internet safety and regulation.

The meeting notes conclude: “If there really is a widespread perception in the Valley that the UK Government is anti-tech then shifting the tone is vital. London Tech Week is a great opportunity, and couldn’t have arrived at a better time.”
A new regulatory regime for tech giants

Plans for a new regime to govern the most powerful tech firms involve a code that will help to shape the behaviour of these businesses, including how they do business with other companies and treat their users.

If the plans get the go-ahead, the government’s Digital Markets Unit (DMU) will have a range of powers to address concerns, including the potential for significant penalties on Big Tech firms.

The plans also include pro-competitive interventions, which can be used to address the sources of market power, allow competition to flourish and unlock the potential for transformative innovation by others in the market.

An example of such an intervention could be imposing interoperability requirements on tech firms and better enabling consumers to control and share data.

The regime would also include enhanced merger rules, which would enable the CMA to apply closer scrutiny to transactions involving big tech firms.

“To ensure the UK can continue to enjoy a thriving tech sector, consumers and businesses who rely on tech giants like Google and Facebook should be treated fairly, and competitors should face a level playing field - enabling them to deliver more of the innovative products and services we value so highly,” said CMA chief executive Andrew Coscelli. “For that to happen, the UK needs new powers and a new approach. In short, we need a modern regulatory regime that can enable innovation to thrive, while taking swift action to prevent problems.”

Information commissioner, Elizabeth Denham said: “We welcome the publication of the Digital Markets Taskforce Advice and we have been pleased to support the work of the Taskforce. The dominance of a few major players in digital market impacts on people’s data protection rights when they use these platforms. Our involvement with the Taskforce reflects the importance of safeguarding these rights and ensuring individuals have greater control over their personal information.

“We continue to work closely with the CMA, Ofcom and FCA through the Digital Regulation Cooperation Forum to co-ordinate our approach to the regulatory challenges presented by new digital markets and platforms.”

Dame Melanie Dawes, Ofcom chief executive, said: “We share the aim of ensuring competition works well in the digital economy, something which is vital to the sectors Ofcom regulates. We’ve been pleased to contribute to the Taskforce’s work, and we look forward to working with the Government and other regulators to help take this forward.”

Nikhil Rathi, chief executive of the FCA, said: “We have welcomed the opportunity to work closely with the Digital Markets Taskforce on their recommendations, which are an important step in developing an approach that protects consumers in digital markets. We will be focusing on the implications for financial services.”

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