LONDON – Google has pledged to take stronger actions against fake reviews, including penalizing UK businesses and individuals involved in manipulating star ratings, following a detailed investigation by Britain’s competition watchdog.
The U.S. tech giant has also agreed to display “warning” alerts on the profiles of UK businesses found to have used fake reviews to inflate their ratings, according to a statement from the Competition and Markets Authority (CMA).
The CMA launched a formal investigation into both Amazon (AMZN.O) and Alphabet’s (GOOGL.O) Google in 2021, expressing concerns that the companies were not doing enough to address fake reviews on their platforms, which millions of consumers rely on when making online purchasing decisions. The probe into Amazon remains ongoing.
The regulator highlighted that up to £23 billion ($29 billion) of UK consumer spending could be influenced by online reviews each year, with 89% of consumers using reviews when researching products or services.
“The changes we’ve secured from Google ensure that strong processes are in place, giving people confidence in reviews and helping them make better-informed decisions,” said CMA chief executive Sarah Cardell. “This is a fairness issue for both businesses and consumers, and we encourage the entire sector to take note.”
A Google spokesperson emphasized that its collaboration with regulators, including the CMA, is part of its ongoing efforts to combat fake content and bad actors.
Starting in April, the CMA will have new powers to independently determine whether consumer law has been violated, without the need to take cases to court.
The CMA has increased its scrutiny of major tech companies and recently launched investigations into Google’s search services as well as Apple and Google’s mobile ecosystems.
However, the appointment of a former Amazon executive to chair the CMA has raised concerns among competition lawyers and industry experts, who feel it may signal mixed signals regarding the regulator’s approach.
