A recent article in the Daily Mail has highlighted how the UK’s competitions watchdog launches investigation into algorithms used by Google, Amazon and Facebook amid fears they are ‘manipulating’ lives
- Algorithms can reduce competition and harm consumers, a UK watchdog says
- Competition and Markets Authority (CMA) to probe if they ‘manipulate’ people
- Concerns algorithms are influencing shopping, dating and food choices
- Some can bump up online prices and decide what news we are presented with
An investigation into algorithms used by companies such as Google, Facebook and Amazon has been launched today amid fears they are ‘manipulating’ lives and are used to ‘artificially change perceptions’ by cherry-picking what news internet users see.
The Competition and Markets Authority (CMA) will probe fears whether the software used by tech giants is corrupting lives and livelihoods by limiting choice, bumping up prices and skewing how they consume current affairs.
Algorithms wield enormous power over millions of Britons yet there is little or no accountability for tech firms over the results they produce or what they force consumers to see.
What is an algorithm?
They are mini instruction manuals telling computers how to complete a given task or manipulate given data. Tech companies use them to tailor results to sell more goods or manipulate what they see.
What are the main types?
- The Also-like algorithm: Amazon uses them to predict what users might want to buy. For example, a parent who buys nappies online may log on to the website and be met with offers on baby wipes.
- YouTube uses it to predict what videos someone would like.
- The filter algorithm: These are used by Google to decide what people view meaning not all search results are the same. These are used for shopping and news.
- Prediction algorithms: An algorithm used by betting companies allowing them to change odds and predict where people will bet.
- Regression algorithm: Uses data from opinion polls, age and gender data to predict things such as elections
An On-going Investigation
One of the issues they will look at will be the use of algorithms by Google and Facebook to decide what news is shown to people using their websites. There are also concerns they are used to manipulate the UK’s £14billion online advertising market, which is also dominated by Google.
These search results are often based on their previous browsing and links they have clicked on, rather than directing them to publishers offering the closest match to a search. The same criticism has been aimed at YouTube and the videos it suggests users watch next.
The consumer group Which? has also raised concerns that algorithms used by Amazon to give products an ‘Amazon Choice’ recommendation can skew shopping habits and potentially see people paying more for products. The online giant also predicts what someone might buy based on previous purchases, their gender, whether they have children and what they watch on their Prime player.
Google’s use of algorithms will be examined as part of a wider investigations into whether they are being used to manipulate people in Britain
Amazon uses previous purchases and things you have clicked on or watched to sell more goods (pictured)
These so-called ‘nudges’ on websites ‘can be manipulated to reduce choice or artificially change consumers’ perceptions’ and even lead to ‘personalised pricing’, the CMA said.
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