Google maintains search dominance as ACCC reiterates call for codes
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The news: In the three years since the competition regulator reported on the search market as part of its initial digital platforms inquiry, Google's dominance has not shifted, the watchdog said in a new study.
The context: In the regulator's ninth interim report as part of its ongoing five-year digital platform services inquiry, the Australian Competition and Consumer Commission (ACCC) said AI had the potential to disrupt search, but has so far had a limited impact.
The regulator said this is in part due to Google and Microsoft's ability to introduce generative search type functions or integrated AI functions into their existing search functions.
"Google and Microsoft’s participation in several layers of the generative AI supply chain, as well as their established positions in general search, mean they are each well placed to leverage generative AI into their own search offerings," the ACCC said in its 99-page report.
The ACCC's five-year digital platform inquiry began in February 2020.
A final report expected in late March 2025, will be the 10th and last study in the series, which has seen the regulator call for the government to introduce new competition measures to curb the dominance of platforms in markets including search, social media and app stores.
This week, the government announced a consultation on plans for new competition measures in response to those calls from the ACCC, initially targeting app stores and and ad tech.
While the government has not included search in its plans at this stage, it has said existing competition laws "are no longer effective" in addressing the control of "a handful of global giants" in key services, of which search is one.
The ACCC has said in its report that its recommendations for how to address competition issues in the search market remain unchanged since a 2021 report on search engines and choice screens, or its later 2022 regulatory reform report.
The watchdog wants to see codes of conduct in the market that would:
- Prevent anti-competitive self-preferencing, tying and exclusive pre-installation;
- Address data disadvantages;
- Ensure fair treatment of business users; and
- Improve switching, interoperability and transparency.
What they said: “We are at a critical inflection point where generative AI tools are enabling technological innovations across a range of digital platform services. In general search, we are seeing Google Search, Microsoft Bing and new entrants launching or integrating AI-powered search features,” ACCC Commissioner Peter Crone said.
The source: ACCC media release
