Thank you for calling me, Mr Deputy Speaker. As someone who believes in open, competitive and free markets because they foster innovation, generate prosperity and create the wealth that we need for our public services, I believe we must have robust competition powers so that we can take action against companies that act in an anti-competitive manner. In the 21st-century world, the economic actors are frequently global players, especially in areas such as digital markets. It is important that we can work with other countries on competition issues.
A couple of years ago, I was in Silicon Valley with politicians from Germany, the Netherlands, Poland and the Czech Republic. Many players in Silicon Valley told us about their concerns about how Google was acting. I went with that group of politicians to meet the head of search at Google, and I have never seen a company with so many lawyers in one room. They knew the power that countries could have when acting together. It was therefore interesting to see the European Commissioner for Competition taking action, a couple of weeks ago, on a proposed fine for Google. That case has caused some controversy, and it may create precedents for how platforms can act in future.
It is important in such cases that those who are taking the action make it clear that there is a level playing field, and that they are not singling out, for example, an American company when they would not do the same to a British or European one. One benefit of a co-operation deal, such as the one that we are discussing today, is that by working together we can help to reinforce the level playing field and the idea that we would not single out our own companies for a different type of enforcement. It removes what we call the jurisdiction bias risk. It also brings bigger resources to take on big cases, and post-Brexit the UK will want to make it clear to the world that we are prepared to take on competition cases for big players. The ability to continue to co-operate with other countries is therefore important.
Canada is a dear friend to the UK, as my hon. Friend the Member for Brigg and Goole (Andrew Percy) pointed out, but the Canada free trade agreement is not the perfect model for the future UK-EU relationship. That agreement removes many, many tariffs from different trades. We voted it through in the European Parliament on 15 February, the day after Valentine’s day, and I remember celebrating, as we would have tariff-free chocolate—a great benefit. However, it does not create the deep level of market access that the Government seek in our future relationship with Europe. If we chose that model off the shelf, it would create many new non-tariff barriers in areas such as digital and financial services. It would not provide the regulatory co-operation model that we seek. For example, British car manufacturers would not even be consulted in a stakeholder consultation about changes to international rules on car transactions.
We therefore need a deeper model, and we need to make sure that co-operation on competition has a dispute resolution mechanism for companies as well as countries. I was particularly pleased to hear my hon. Friend the Member for Stone (Sir William Cash) suggest that the European Free Trade Association courts might prove to be a good or interesting basis for dispute resolution. He was sending a powerful message, given all his experience, that that might be a pragmatic solution.
Finally, picking up the suggestion from my hon. Friend the Member for Stone that we need to move on from being brothers and sisters to become close cousins, in developing that relationship there will be things about which we will need to have serious discussions and arguments. I would suggest that this is not one of them. Allowing other countries to come together on issues such as human rights and competition co-operation
is something that we should allow to pass and not block. We should save our discussions and arguments for when they are really needed.
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