Searching for some competition - ACCC
A report by the ACCC into internet search engines has found things really need to change to give the consumer more choice .
The Australian Competition and Consumer Commission ’ s ( ACCC ) third Digital Platform Services Inquiry interim report found Google continues to dominate the market with a 94 per cent market share .
Google Search is the default search engine on the two most popular browsers in Australia , Google ’ s Chrome browser and Apple ’ s Safari browser , which are pre-installed on most mobile devices in Australia .
Measures addressing Google ’ s dominance in search engine services , including a choice screen that provides consumers with a selection of search engines , should be introduced in Australia , according to the report .
It found that Google ’ s dominance in general search engine services in Australia is extended and entrenched by the large sums of money it pays to be the default search engine on Apple ’ s Safari browser and its ownership of Chrome . Also , with the pre-installation and default arrangements it has in place with competing browser suppliers and device manufacturers that use Google ’ s Android operating system .
“ Search engines play a critical role in the digital economy . We are concerned that Google ’ s dominance and its ability to use its financial resources to fund arrangements to be the default search
LAW LEGAL & ORDER MATTERS engine on many devices and other means through which consumers access search , such as browsers , is harming competition and consumers ,” ACCC Chair , Rod Sims , said .
“ Google pays billions of dollars each year for these placements , which illustrates how being the default search engine is extremely valuable to Google ’ s business model .”
A survey commissioned by the ACCC found that most consumers surveyed tend to stay with their device ’ s pre-installed browser and pre-set search engine .
Further , roughly one in four consumers reported not knowing how to change the default web browser or search engine on their mobile device .
“ Access to consumers is critical for search engine services to grow and compete against Google , but Google ’ s vertical integration and costly commercial arrangements have made this very difficult ,” Mr Sims said .
“ Google ’ s existing dominance and its commercial arrangements have significantly increased barriers to entry and prevented new or emerging rival search engines from reaching consumers , not only through browsers but also through other access points like search apps , widgets and voice assistants like Siri .
“ This is likely to have stifled innovation and reduced consumer choice . It means that consumers may not be exposed to or aware of other options , such as search engines that protect users ’ privacy and / or have an ecological focus , which limits the
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Hard to find : Google Search dominates Australia ’ s digital search engine services with a 94 per cent market share . Photo by Ekaterina Bolovtsova from Pexels .
ability of these businesses to grow . “ While most search engines do not charge users to conduct search queries , a competitive search services market could include many benefits for consumers including innovation in search results or display , a reduction in sponsored advertising results and incentives to attract users through novel offerings such as rewards or better data protection .”
To address this , the ACCC recommends a range of measures including :
• It be given the power to develop and implement a mandatory search
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engine choice screen . A choice screen presents consumers with a selection of search engines , rather than having a default search engine set for them .
• It be given the power to develop additional measures to improve competition and consumer choice in search . This may include potentially restricting dominant search engines from tying or bundling search services with other goods or services , among other measures .
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BLACKTOWN CITY INDEPENDENT theindependentmagazine . com . au ISSUE 09 // DECEMBER 2021 25