Australia pushes for new rules on AI in search engines

Australia‘s competition watchdog has called for a review of efforts to ensure more choice for internet users, citing Google’s dominance in the search engine market and the failure of its competitors to capitalise on the rise of AI. A report by the Australian Competition and Consumer Commission (ACCC) highlighted concerns about the growing influence of Big Tech, particularly Google and Microsoft, as they integrate generative AI into their search services. This raises questions about the accuracy and reliability of AI-generated search results.

While the use of AI in search engines is still in its early stages, the ACCC warns that large tech companies’ financial strength and market presence give them a significant advantage. The commission expressed concerns that AI-driven search could lead to misinformation, as consumers may find AI-generated responses both more useful and less accurate. In response to this, Australia is pushing for new regulations, including laws to prevent anti-competitive behaviour and improve consumer choice.

The Australian government has already introduced several measures targeting tech giants, such as requiring social media platforms to pay for news content and restricting access for children under 16. A proposed new law could impose hefty fines on companies that suppress competition. The ACCC has called for service-specific codes to address data advantages and ensure consumers have more freedom to switch between services. The inquiry is expected to close by March next year.