Govt rejects calls to curb Google dominance

By Our Parliamentary correspondent, campaignlive.co.uk, Thursday, 02 July 2009 06:30AM

LONDON - The Government has rejected pressure from MPs to weaken Google's domination of the online search advertising market.

Google…MPs' demands rejected

Google…MPs' demands rejected

Ministers have discussed, but dismissed, the idea of a tax on online and search ads and have rebuffed demands for Google's market share to be investigated by the Competition Commission.

Lord Carter, the Communications Minister, considered both levies to help fund public-service broadcasting as he drew up his Digital Britain blueprint. Although he was initially attracted to the ideas, they were dropped as impractical. Whitehall insiders say a tax on online would have hit the struggling newspaper industry, while a levy on search ads would have singled out Google.

Tax changes will not be included in the Digital Economy Bill to be introduced in the final Parliamentary session before the General Election. Some 33 MPs have now signed a Commons motion expressing concern that Google has boosted its share of the online search ad market to almost 90 per cent and demanding government action to prevent the "monopolisation" of the market.

A Google spokesman said: "Just as there are no costs to users to using another search engine, there are no costs or contracts to prevent advertisers switching from Google."

This article was first published on campaignlive.co.uk

X

You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs