LONDON, Jan 24 (Reuters) - Google will take more significant steps to address fake reviews, such as penalizing UK businesses and individuals engaged in manipulating star ratings, as stated by Britain's competition regulator after an extensive investigation.
The U.S. tech giant has also agreed to display "warning" alerts on the profiles of British businesses that have utilized fake reviews to enhance their ratings, the Competition and Markets Authority (CMA) announced in a statement.
The CMA initiated an inquiry into Amazon and Alphabet's Google in 2021 due to concerns regarding their insufficient actions to combat fake reviews on their platforms, which play a vital role in guiding online purchases for millions of users.
The examination of Amazon is still ongoing, according to the CMA.
The regulator highlighted that up to £23 billion ($29 billion) of UK consumer spending could be influenced each year by online reviews, with 89% of consumers relying on such reviews when researching a product or service.
CMA chief executive Sarah Cardell emphasized, The changes we have enforced with Google ensure the implementation of rigorous processes to instill confidence in reviews and aid consumers in making well-informed decisions. This is a matter of equity for both businesses and consumers, and we urge the entire industry to take note.
A Google spokesperson mentioned that the company's collaboration with regulators globally, including the CMA, is part of its continuous efforts to combat fake content and malicious actors.
Starting in April, the CMA will be empowered with new authorities to independently assess potential violations of consumer laws without resorting to court proceedings.
The regulatory scrutiny on major tech companies has been intensifying, with the CMA launching two investigations this month, one focusing on Amazon and another targeting Apple and Google.
Nevertheless, the appointment of a former Amazon executive to lead the CMA has raised concerns among competition lawyers and industry experts about its impartiality.
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