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UK Internet Search Engines

I welcome that intervention, which is helpful. That is quite true, and it is the thrust of the point that I am making. British companies are being stifled. Moreover, the Treasury is losing out. In 2008-09, The Guardian reported that Google, by locating its companies outside the UK, avoided paying £450 million to the UK Treasury, and that was just in one year. Google is also taking advantage of the lower tax rates. It has leverage with large organisations and can employ other commercial anti-competitive practices to the disadvantage of British companies. I take on board the hon. Gentleman's point; it is very relevant. I want to come on to the extension of Google into the mobile market. There is speculation that Google may seek to acquire, or seek preferential contracts with, 3G networks specifically to harness advantageous proprietary Google technology into that network, which again would be to the disadvantage of other companies. Although I am aware that competition law is predominantly dealt with on a European level, what legislative and non-legislative efforts do this Government intend to take to address the imbalance and protect cutting-edge British companies, such as the one that the hon. Gentleman mentioned? I am sure that in his constituency he has IT companies like Reach Global that need our help. What action are the Government planning to take to ensure that a competitive yet innovative market exists in the UK online industry, for the benefit of companies, customers and the economy? At a time when other markets are struggling, the online digital economy is growing and innovating. We must ensure that it remains open to fostering as many innovative competitors as possible and that British companies and British interests are not compromised. A recent study by the Boston Consulting Group found that the internet contributed an estimated £100 billion to the UK economy in 2009. To put the figure into perspective, it contributed more than construction, transport or utilities. To achieve its full potential, smaller businesses need to be given the opportunity to grow. The Government need to ensure that we create the right conditions for a new economic activity to flourish. In conclusion, it is in the interests of customers, business and securing the recovery of the UK economy that this issue be dealt with.