Britain to Give New Tech Regulator Statutory Powers

Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls
Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls
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Britain to Give New Tech Regulator Statutory Powers

Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls
Skyscrapers in The City of London financial district are seen from City Hall in London, Britain, May 8, 2021. REUTERS/Henry Nicholls

Britain will give statutory powers to a new technology regulator so it can enforce pro-competition rules and prevent tech giants including Google and Facebook from using their dominance to push out smaller firms and disadvantage consumers.

“The government will introduce legislation to put the Digital Markets Unit on a statutory footing in due course,” the Department of Culture, Media and Sport (DCMS) said in a statement on Thursday.

A spokesperson for the DCMS declined to comment when asked if legislation will be included in the government's program for the coming year, due to be outlined in the Queen's Speech on May 10.

The Digital Markets Unit (DMU) was launched in non-statutory form within the Competition and Markets Authority (CMA) last year to make sure tech companies don't abuse their market power.

The change would give the unit stronger enforcement powers, Reuters reported.

The DCMS said its proposals would make it easier for people to switch between Apple iOS and Android phones or between social media accounts without losing their data.

Smartphone users could get more choice of search engines and social media platforms and more control over how their data is used by companies.

The DCMS said small and medium-size businesses would get better pricing from big tech firms that they use to trade online. The firms would need to warn smaller companies about changes to their algorithms that drive traffic and revenues.

The proposed measures would also make sure news publishers are able to monetize their online news content and be paid fairly for it. The DMU would have the power to step in to solve pricing disputes between news outlets and platforms. App developers would be able to sell their apps on fairer and more transparent terms.

“We want to level the playing field and we are arming this new tech regulator with a range of powers to generate lower prices, better choice and more control for consumers while backing content creators, innovators and publishers, including in our vital news industry,” said digital minister Chris Philp.

The DCMS said the DMU will be able to levy fines of up to 10% of annual global turnover.



OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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OpenAI Enters Google-Dominated Search Market with SearchGPT 

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

OpenAI is venturing into a territory long dominated by Google with the selective launch of SearchGPT, an artificial intelligence-powered search engine with real-time access to information from the internet.

The move, announced on Thursday, also places the AI giant in competition with its largest backer Microsoft's Bing search and emerging services such as Perplexity — a search-focused AI chatbot firm backed by Amazon founder Jeff Bezos and semiconductor giant Nvidia.

Shares of Google's parent company Alphabet ended 3% lower on Thursday after OpenAI's announcement.

OpenAI said it has opened sign-ups for the new tool, which is currently in the prototype stage and is being tested with a small group of users and publishers. The company plans to integrate the best features from the search tool into ChatGPT in the future.

"AI-powered search tools from OpenAI and Perplexity re-affirm search as a content engagement model but pressure Google to be better at its own game," Canaccord Genuity analyst Kingsley Crane said.

Google dominates the search engine market with a 91.1% share as of June, according to web analytics firm Statcounter.

SearchGPT will provide summarized search results with source links in response to user queries, OpenAI said in a blog post. Users will also be able to ask follow-up questions and receive contextual responses.

The company will give publishers access to tools for managing how their content appears in SearchGPT results. News Corp and The Atlantic are publishing partners for SearchGPT.

SearchGPT signals a closer collaboration between publishers and OpenAI, following content licensing agreements with major organizations like Associated Press, News Corp and Axel Springer.

"Newer AI-powered search providers could face challenges of their own, with Perplexity already facing pending legal action from publishers like Wired and Forbes, and Condé Nast," said Crane.

Major search engines have been trying to integrate AI into search since ChatGPT first launched in November 2022. Microsoft, through its early investment, adopted OpenAI technology for its Bing search engine, while Google rolled out AI-powered summaries for the wider public at its developer conference in May.

Google did not respond to a Reuters query on the potential impact of SearchGPT on its business.

Reuters had earlier reported on OpenAI's plans around AI search in May.