UK Launches Formal Probe into Amazon and Google Over Fake Reviews

Amazon and Google, two of the biggest players in the tech industry, are facing a formal probe by Britain’s competition regulator over concerns they have not done enough to tackle fake reviews. The Competition and Markets Authority (CMA) is investigating whether these companies have taken adequate steps to prevent or remove fake reviews to protect customers and honest businesses.

Misleading consumer reviews have been a significant problem in e-commerce, with Amazon being a prime target for brands looking to hype up their products online with fake favorable write-ups. Last month, the company called on social media firms to help weed out dishonest reviews.

The CMA began an initial investigation into the issue of fake reviews back in May 2020. Earlier that year, it had gotten Facebook and eBay to remove several groups and accounts that engaged in trading fake reviews. In April this year, the CMA said Facebook had removed thousands more groups that were dealing in false and misleading reviews and had made further changes to its systems to identify, remove, and prevent such content from appearing on its platforms.

Now, the CMA has turned its attention to Amazon and Google, saying it will investigate whether they have done enough to detect and remove fake reviews. The watchdog will also examine whether the companies penalize reviewers or firms to deter them from posting misleading scores.

The CMA is worried that Amazon’s systems are failing to prevent sellers from manipulating product listings, such as merchants co-opting positive reviews from other products. The regulator has not yet decided whether Amazon and Google have broken the law at this stage, but it said it would take enforcement action, including taking the companies to court if necessary, if they are found in breach of consumer protection law.

Amazon said it devotes “significant resources” to preventing fake or incentivized reviews, adding that it will continue to assist the CMA with its inquiries. Google said the company’s policies “clearly state reviews must be based on real experiences,” adding that it takes action to remove abusive content or disable user accounts when policy violations are found.

The CMA’s investigation is the latest in a string of investigations into digital giants. Just three days ago, the European Union launched another antitrust probe into Google, investigating whether the internet search giant was favoring its own online display advertising technology services.

Britain’s CMA is aiming to take a growing role in scrutinizing major U.S. tech firms after Brexit. The watchdog has been tasked by the government with setting up a new Digital Markets Unit to police competition in the U.K.’s internet market. As the digital economy continues to grow, it is crucial for regulators to ensure that competition is fair and that consumers are protected from misleading or fraudulent practices.

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