The ACM’s study into paid ranking mirrors the findings of the UK competition authority’s recent algorithms paper.
A study into sponsored search results: The Dutch Authority for Consumers & Markets (ACM), has published a study into paid ranking algorithms, whereby businesses using an online platform benefit from improved search rankings if they pay a fee to the platform.
What harms did the ACM identify? If many businesses were placed high in search results because they paid for it, this could lead to less favourable deals for consumers. Businesses could pass this fee on to customers, and consumers may see less relevant or lower-quality offers higher in the rankings. The regulator’s next step will be to examine the role transparency can play in mitigating the risks, and identify the requirements companies will need to meet.
A study that mirrors the CMA’s findings in the UK: The ACM’s study comes days after the UK competition authority, the CMA, opened a consultation on potential harms of algorithms. The CMA identifies four types of consumer harms, including ‘unfair ranking and design’ as a result of paid ranking, because position bias can lead consumers to prefer products ranked higher in search results.
Source: https://www.acm.nl/en/publications/acm-sees-risks-associated-paid-ranking-consumers-and-competition
