Search engines face new competition probe
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The news: The Australian Competition and Consumer Commission (ACCC) is opening a new enquiry into search engines off the back of generative AI developments and the introduction of choice screens in the European Union.
The ACCC will consider the emergence of AI-powered search engines and the technology's potential impact on competition in the market for search services.
The numbers: In 2021 Google accounted for around 89% of mobile and desktop search traffic and this increased to 98% in 2024, according to Statcounter data.
The ACCC said that in 2021 Google reportedly paid USD26.34 billion ($40.13) to business partners to secure the status of default search engines on browsers and mobile phones. Google reportedly paid Apple 36% of its Safari search revenue (which analysts estimated to be around USD18 billion in 2021 and USD19 billion in 2023), in exchange for default search engine status on search access points on Apple’s devices.
Google's practices have prompted EU and Indian regulator's to impose fines against the company of around $2.7 billion and $162 million respectively.
The context: The ACCC is seeking written submissions through to 17 April to find out how consumers are using general search services, or AI chatbots and social media to find information and whether alternative services to search engines "competitively constrain Google Search".
In 2021, the regulator found that Google's search engine being pre-installed as a default search service on devices contributed to it being the dominant search engine in Australia.
In late 2022, the ACCC recommended to government that it introduce a mandatory code for designated search services to increase choice for consumers by lowering barriers to expansion by rivals.
US and Japanese regulators are also currently scrutinising Google's exclusivity agreements with third parties.
What they said: ACCC chair Gina Cass-Gottlieb said: "Significant changes have occurred since the ACCC last examined search services in 2021".
"We’ve seen new laws introduced overseas that place obligations on so-called gatekeeper search engines and the emergence of new technologies, like generative AI, that have changed the way consumers search for information online and may be impacting the quality of the service they are receiving."
The source: ACCC media release
