Dec 4 (Reuters) - Australia's competition watchdog said

there was a need to revisit efforts to ensure greater choice for

internet users, citing Google's dominant search engine

market share and its competitors' failure to capitalise on the

artificial intelligence boom.

A report by the Australian Competition and Consumer

Commission said that while the integration of generative AI

tools into search engines is still nascent, Big Tech's deep

pockets and dominant presence give it an upper hand.

The commission said it was concerned Google and Microsoft ( MSFT )

could integrate generative AI into their search offerings,

including through commercial deals, which raises concerns about

the accuracy and reliability of search queries.

"While some consumers may find the generative AI search

experience more useful and efficient, others may be concerned

about the accuracy and reliability of AI-generated responses to

search queries," Commissioner Peter Crone said.

Google and Microsoft ( MSFT ) did not immediately respond to Reuters

requests for comment.

Australia has intensified the spotlight on the tech giants,

which are mostly domiciled in the U.S. It was the first country

to make social media platforms pay media outlets royalties for

sharing their content.

Last month, it passed a law that banned social media for

children aged under 16, and proposed a law earlier this week

that could impose fines of up to A$50 million ($32.28 million)

on tech giants if they suppress competition and prevent

consumers from switching between services.

The Australian watchdog on Wednesday urged the use of

service-specific codes that help prevent anti-competitive

behaviour, address data advantages and allow consumers to switch

between services freely.

These proposed measures have been agreed to in principle by

the government, ACCC said, and it will close its enquiry by next

March.

($1 = 1.5492 Australian dollars)