The government has announced that it is using new powers to investigate whether the online search engine Google uses its market dominance to harm competition between businesses and choice for users.

This is the first time the government has used its new powers under the Digital Markets, Competition and Consumers (DMCC) Act 2024 that This Site mentioned in an article a few days ago.

In a letter to This Writer, a spokesperson for the Department for Science, Innovation and Technology explained:

The Digital Markets, Competition and Consumers (DMCC) Act… gives the Competition and Markets Authority new, faster, and more effective tools to help rebalance the relationship between major platforms and those who rely on them, including content providers.

For example, conduct requirements could be used to give businesses transparency over the algorithms that drive traffic and revenue, while pro-competition interventions could be introduced to address the causes of market power. This could include requiring designated companies to allow third parties greater access to key data which can otherwise lead to imbalances in bargaining power.

The CMA will also have the ability to impose penalties to ensure compliance with these new rules, which can include fines of up to 10% of global turnover.

The CMA is independent of government, and any interventions, which may include remedies under the digital markets regime, will be based on evidence and subject to consultation.

Clear?

With regard to Google, the BBC tells us

The CMA says it wants to ensure the tech giant is “delivering good outcomes for people and businesses” and that there is a “level playing field” for rivals.

The CMA says potential changes it could impose include sharing data Google collects with other businesses, or giving publishers more oversight of how their data is used for its artificial intelligence (AI) features.

“Millions of people and businesses across the UK rely on Google’s search and advertising services,” said Sarah Cardell, the CMA’s chief executive on Tuesday.

“And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed.” she added, especially given the potential for AI to “transform” the market.

This Writer will be watching what happens carefully.

I am currently working on a submission to the CMA regarding the social media platforms like Meta and X, and the algorithms they use to restrict the posts, links and accounts that users are allowed to see.

Oh, you didn’t know that your newsfeeds on these sites are restricted? Well, now you do.

I’m trying to get as many businesses as possible, that are affected by this treatment, to join me in calling for an investigation. If you have a firm that has lost readers on these sites over the last few years, feel free to contact me by emailing [email protected]

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