GOOGLE FACES MORE SCRUTINY AS UK WATCHDOG FLEXES NEW DIGITAL COMPETITION POWERS

Britain's competition watchdog flexed new digital market powers for the first time with an investigation into Google's search and search ad businesses.

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Under beefed-up rules that took effect this month designed to protect consumers and businesses from unfair practices by Big Tech companies, the Competition and Markets Authority said it would determine whether Google should be given “strategic market status” that would require imposing changes to the company’s behavior. The investigation adds to global scrutiny that the U.S. tech giant is facing.

The Competition and Markets Authority said it will examine whether Google is using its position in the market to stifle innovation and block rivals. The regulator said it will look in particular at Google's role in shaping the development of new artificial services and interfaces such as “answer engines,” in ways that “limit the competitive constraint they impose on Google Search.”

Al-powered chatbots have become increasingly popular with internet users looking for information online. Google last year retooled its search engine so that it now frequently favors responses crafted by artificial intelligence over website links.