(Reuters) – Australia’s competition watchdog said there was a need to review efforts to provide more choice for Internet users, citing Google’s (NASDAQ: ) dominant search engine market share and the failure of its rivals to capitalize on the boom in artificial intelligence.
A report by the Australian Competition and Consumer Commission said that while the integration of generative AI tools into search engines is still in its infancy, the deep pockets and dominant presence of Big Tech give it the edge.
The commission said it was concerned that Google and Microsoft (NASDAQ: ) could integrate generative artificial intelligence into their search offerings, including through commercial contracts, raising concerns about the accuracy and reliability of search queries.
“While some consumers may find an AI-generated search experience more useful and efficient, others may be concerned about the accuracy and reliability of AI-generated responses to search queries,” said commissioner Peter Crone.
Google and Microsoft did not immediately respond to Reuters requests for comment.
Australia has intensified its focus on tech giants, which are mostly based in the US. It was the first country to force social media platforms to pay media outlets fees for sharing their content.
Last month she passed legislation banning social media for children under 16, and earlier this week she proposed legislation that could impose fines of up to A$50 million ($32.28 million) on tech giants if they stifle competition and prevent consumers from switch between services.
Australia’s watchdog on Wednesday called for service-specific codes to help prevent anti-competitive behaviour, address data benefits and allow consumers to freely switch between services.
The government has accepted these proposed measures in principle, the ACCC said, and will close its investigation by next March.
($1 = 1.5492 Australian dollars)
