The Chief of Tech London Advocates, Russ Shaw, has attacked Microsoft and Revolut over their criticism on UK regulators. Shaw said that these regulators were doing what was needed from them under the law, adding that they do not simply “roll over and play dead.”

UK Tech Lobby Chief Defends Regulators

While speaking to CityAM, Shaw said that the criticism directed towards UK regulators was a positive sign that they were actively involved in their jobs. Therefore, they were conducting an intense scrutiny on the financials of tech giants and how they operated.

“I think this is a good signal that our regulators are not just going to roll over and play dead, but they’re going to take their job seriously and scrutinize. If they don’t like something, whether it’s the financials of the way a big tech player is behaving, I think it’s important that they speak out,” Shaw said.

Shaw said that the UK regulators were demonstrating their strengths after the country left the European Union. He also added that regulators intended to get companies to behave in a sensible and responsible manner to boost accountability.

On the other hand, the tough regulatory action that UK regulators are taking towards the tech industry fails to align with the country’s plan to support the growth of the sector. The UK government has previously announced plans to transform the country into a fintech hub.

Microsoft And Revolut Criticise Regulators

Microsoft and Revolut had criticised UK regulators because of getting rid of their plans. The Competition and Markets Authority took a decision against Microsoft over a merger with Activision Blizzard. The regulator raised concerns about the growing competition in the cloud gaming industry. The merger was cleared by authorities in the US and the European Union.

UK authorities also denied Revolut a highly-anticipated banking license that it applied for in 2021. A report by the Telegraph said that the Prudential Regulatory Authority (PRA) was likely to turn down the license application amid concerns about the company’s accounts. The founder of Revolut, Nikolay Storonsky, criticised the PRA and the Financial Conduct Authority (FCA) over the possible denial of a banking license.

Storonsky said that in the US, the tech industry is supported by the government. Key market players including lobbyists, governors and all politicians support the tech business, which is a complete opposite of what happens in the UK. He added that the UK tech industry was experiencing a slowdown.