Asked by: Lord Fox (Liberal Democrat - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the US judgment on 5 August in the case of United States, et al. v. Google, LLC, (No. 20-cv-3010 (APM) (D.D.C. Aug. 5, 2024), Dkt. No. 1033) and in particular, what estimate they have made of the proportion of the $200 billion unlawful transactions identified in the judgment which pertains to UK trade; and what assessment they have made of the effect eliminating the unlawful practices identified in the judgment would have on (1) the UK’s gross domestic product, and (2) the UK’s tax revenue.
Answered by Baroness Jones of Whitchurch - Baroness in Waiting (HM Household) (Whip)
The Competition and Markets Authority (the CMA) is independent to Government and is responsible for investigating competition issues in the UK. In July 2020, the CMA published the final report of its market study into online platforms and digital advertising. The report showed evidence of Google having significant market power in the general search and advertising markets. Since this report, the CMA has opened investigations into suspected anti-competitive conduct by Google in the ad-tech market and the use of its ‘privacy sandbox’ tools.
The Government is working with the CMA to implement the Digital Markets, Competition and Consumers (DMCC) Act. Part 1 of the Act will equip the CMA with faster, more effective tools to address the causes and consequences of market power in digital markets. This includes ensuring a small number of the most powerful digital firms comply with tailored rules on how they treat consumers and other businesses. The CMA will also be able to address the causes of competition issues in digital markets, to promote more dynamic markets. These reforms are estimated to deliver £6.2bn in consumer benefits over 10 years. The DMCC Act will protect small businesses, save consumers money, boost innovation and drive growth.