Interim report 9: Revisitinggeneral search services September 2024 Acknowledgement of country The ACCCacknowledges the traditional owners and custodians of Country throughoutAustralia and recognises their continuing connection to the land, sea and community. Wepay our respects to them and their cultures; and to their Elders past, present and future. Australian Competition and Consumer Commission Land of the Ngunnawal people 23 Marcus Clarke Street, Canberra, Australian Capital Territory, 2601 © Commonwealth of Australia 2024 This work is copyright. In addition to any use permitted under the Copyright Act 1968, all material contained within this work isprovidedunder a Creative Commons Attribution 3.0 Australia licence, with the exception of: ▪the Commonwealth Coat of Arms▪the ACCC and AER logos▪any illustration, diagram, photograph or graphic over which the Australian Competition and Consumer Commission doesnot hold copyright, but which may be part of or contained within this publication. The details of the relevant licence conditions are available on the Creative Commons website, as is the full legal code for theCC BY 3.0 AU licence. Requests and inquiries concerning reproduction and rights should be addressed to theDirector, Content and Digital Services, ACCC,GPO Box 3131, Canberra ACT 2601. Important notice The information in thispublication is for general guidance only. It does not constitute legal or other professional advice, andshould not be relied on as a statement of the law in any jurisdiction. Because it is intended only as a general guide, it maycontain generalisations.You should obtain professional advice if you have any specific concern.The ACCC has made every reasonable effort to provide current and accurate information, but it does not make any guaranteesregarding the accuracy, currency or completeness of that information.Parties who wish to re-publish or otherwise use the information in this publication must check this information for currency andaccuracy prior to publication. This should be done prior to each publication edition, as ACCC guidance and relevant transitionallegislation frequently change. Any queries parties have should be addressed to theDirector, Content and Digital Services, ACCC, GPO Box 3131, Canberra ACT 2601. ACCC09/2024 www.accc.gov.au Contents Executive summary........................................................................................................................31.Search in Australia: looking back and the current landscape............................................101.1.Searching online in Australia........................................................................................101.2.Google has maintained its dominance in search........................................................151.3.Regulatory change and enforcement actions are occurring internationally, but theirimpact is still developing......................................................................................................212.Generative AI and general search services.........................................................................292.1.Introduction to generative AI........................................................................................292.2.Use of generative AI in general search........................................................................372.3.Potential impacts of generative AI on search.............................................................442.4.Regulatory developments.............................................................................................473.Search quality........................................................................................................................503.1.Search quality in general search..................................................................................503.2.Certain features that affect quality..............................................................................543.2.1.The impact of advertising on search quality................................................553.2.2.The relationship between website quality and search result quality..........613.2.3.Personalisation and targeting.......................................................................683.2.4.Result diversity...............................................................................................733.3.Generative AI and search quality..................................................................................773.4.Conclusion.....................................................................................................................90 Executive summary The emergence of search enginesrevolutionised the way we look for and find information. Ina pre-internet world, we had to rely on physical resources that we could access, eitherprivately or via libraries, or information available from others we knew or could beconnectedto. Today the ability to search for informatio