FILE PHOTO: The Google logo is pictured at the entrance to the Google offices in London, Britain January 18, 2019. REUTERS/Hannah McKay/File Photo
LONDON (Reuters) - Google will do more to tackle fake reviews, including sanctioning UK businesses and people involved in manipulating star ratings, Britain's competition regulator said on Friday following a lengthy investigation.
The U.S. tech giant has also committed to putting "warning" alerts on the profiles of British businesses that used fake reviews to boost their ratings, the Competition and Markets Authority (CMA) said in a statement.
The watchdog started a formal investigation into Amazon and Alphabet's Google in 2021 over concerns they were not doing enough to combat fake reviews on their sites, which are used by millions to inform online purchases.
The investigation into Amazon is ongoing, the CMA added.
As much as 23 billion pounds ($29 billion) of UK consumer spending is potentially influenced by online reviews annually, the regulator said, with 89% of consumers using such reviews when researching a product or service.
"The changes we've secured from Google ensure robust processes are in place, so people can have confidence in reviews and make the best possible choices," CMA chief executive Sarah Cardell said.
"This is a matter of fairness – for both business and consumers – and we encourage the entire sector to take note."
A Google spokesperson said its work with regulators around the world, including the CMA, was part of its ongoing efforts to "fight fake content and bad actors".
From April, the CMA will get new powers allowing it to decide independently whether consumer law has been broken without taking a case to court.
The regulator has been ramping up its scrutiny of big tech, and has this month launched two investigations, one targeting Google's search services and another Apple and Google's mobile ecosystems.
However, the government's choice of a former Amazon executive to chair the CMA has sent mixed signals on its approach, according to competition lawyers and industry experts.
($1 = 0.8049 pounds)
(Reporting by Muvija M. Editing by Paul Sandle and Mark Potter)
