UK regulator opens formal probe into Amazon, Google over fake reviews By Reuters

2/2

© Reuters. A sign is seen at the entrance to the Google retail store in the Chelsea neighborhood of New York City, U.S., June 17, 2021. REUTERS/Shannon Stapleton/File Photo

2/2

(Reuters) -Britain’s competition regulator on Friday opened a formal investigation into Amazon (NASDAQ:) and Alphabet (NASDAQ:) Inc’s Google over concerns the tech giants have not done enough to combat fake reviews on their sites.

The Competition and Markets Authority (CMA) said it will now gather further information to determine whether the firms may have broken consumer law by taking insufficient action to protect shoppers from fake reviews.

The move comes after an initial CMA investigation, which opened in May 2020, and assessed several platforms’ internal systems and processes for identifying and dealing with fake reviews.

The regulator said it was also concerned that Amazon’s systems had failed adequately to prevent and deter some sellers from manipulating product listings, through for example co-opting positive reviews from other products.

“Our worry is that millions of online shoppers could be misled by reading fake reviews and then spending their money based on those recommendations,” said CMA Chief Executive Andrea Coscelli.

“Equally, it’s simply not fair if some businesses can fake 5-star reviews to give their products or services the most prominence, while law-abiding businesses lose out.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.