An investigation into whether Google has too much influence in online search has been started by the UK’s competition watchdog.
The Competition and Markets Authority (CMA), which controls 90% of UK web searches, is investigating whether Google is abusing its dominating position to undermine user choice or competition.
This is the first inquiry it has conducted since acquiring the authority to look into and impose reforms at companies it deems to have “strategic market status” in digital markets.
A “level playing field” for competitors and the tech giant “delivering good outcomes for people and businesses” are the two things the CMA claims it wants to guarantee.
While stating that it will assist with the probe, Google has issued a warning against what it refers to as “overly prescriptive digital competition rules.”
According to Google, “We will continue to engage constructively with the CMA to ensure that new rules benefit all types of websites, and still allow people in the UK to benefit from helpful and cutting edge services.”
It is the most recent in a slew of inquiries Google is subject to globally.
In order to remedy what a judge determined to be an unlawful monopoly in search and related advertising, the US government wants it to sell its browser, Chrome.
According to the CMA, some possible reforms it might enact include granting publishers greater control over how their data is used for Google’s artificial intelligence (AI) capabilities or sharing data that Google gathers with other companies.
The chief executive of the CMA, Sarah Cardell, stated on Tuesday that “Google’s search and advertising services are used by millions of people and businesses throughout the UK.”
Given the potential for AI to “transform” the industry, she continued, “And for businesses, whether you are a rival search engine, an advertiser, or a news organization, we want to ensure there is a level playing field for all businesses, large and small, to succeed.”
‘A fair deal’
Following the implementation of the digital market competition regime in January, the CMA announced its inquiry into Google search and advertising.
It grants the CMA the authority to look into companies that it thinks might control or hold a significant strategic position in a certain industry.
According to an explanation on its website, a business cannot be deemed to have “strategic market status” until it satisfies a number of requirements.
These include holding a position of strategic importance or “entrenched market power” in connection with a particular digital activity, and having a UK turnover of over £1 billion or a global turnover of £25 billion.
According to the CMA, it will investigate whether Google is “self-preferring” its own services or utilizing its market position to dissuade competitors from developing or joining the market.
Additionally, it will examine if Google is gathering a lot of customer data without getting appropriate, informed consent.
“It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal – for example in how their data is collected and stored,” said Cardell.
If it determines that Google has strategic market status, it will have nine months to complete its inquiry and two options: either enacting regulations to control its behavior or implementing measures to increase competition.
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It is “highly likely” that the CMA will begin more, comparable investigations under the Digital Markets, Competition and Consumer (DMCC) Act in the upcoming months, according to Pinar Akman, a law professor at the University of Leeds.
“There is a general trend of regulating digital markets with large players around the world and the DMCC Act represents the UK’s response to that growing trend,” she told the BBC.
Prof. Akman went on to say that the system provides greater flexibility in customizing any mandates or interventions to market specifics than regulations like the EU’s Digital Markets Act.
It comes after Sir Keir Starmer, the prime minister, praised AI’s “vast potential” to revolutionize public services.
In an address on Monday, Sir Keir stated that the AI Opportunities Action Plan’s recommendations, which are supported by a number of tech companies, will be applied in a variety of fields to boost economic growth and make AI “work for working people.”
SOURCE: BBC
