By Stephen Fidler and Georgia Wells 

LONDON -- A U.K. parliamentary committee rebuked Facebook Inc. in a new report that calls for regulation and intensified scrutiny of social-media companies.

The report urged a compulsory code of ethics for technology companies to deal with harmful or illegal content on their sites. It also called for the creation of an independent regulator that has the power to launch legal action against companies in breach of the code that could result in hefty fines.

Large sections of the report were devoted to criticism of Facebook, which it said had intentionally and knowingly violated both privacy and anticompetition laws in how it handled user data and tried to stifle competitors.

The report expands on earlier recommendations from the committee published in July and follows a monthslong inquiry into tech companies and issues of privacy, misinformation and the power of their platforms in the wake of the Cambridge Analytica scandal.

The committee also published another set of Facebook emails following an earlier trove released by Parliament in December that revealed the company's tactics in dealing with competitors and monetizing its user data.

The committee recommended laws governing privacy, data protection, antitrust and competition should be used to rein in companies. "The big tech companies must not be allowed to expand exponentially, without constraint or proper regulatory oversight," it said.

"If companies become monopolies they can be broken up, in whatever sector," the House of Commons Digital, Culture, Media and Sport Committee said in its final report on disinformation and "fake news."

It isn't clear how many of the panel's recommendations will be taken up by the British government, but some are likely to be incorporated in U.K. government policy proposals to be put forward in coming months. The U.K. is scheduled to leave the European Union on March 29, losing its voice in a more influential market covering 500 million people.

Write to Stephen Fidler at stephen.fidler@wsj.com and Georgia Wells at Georgia.Wells@wsj.com

 

(END) Dow Jones Newswires

February 17, 2019 19:15 ET (00:15 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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