The UK’s competition regulator is suggesting loosening Google’s control over its search engine, marking the first application of Britain’s stringent new digital market regulations.
The Competition and Markets Authority announced that Google may need to implement new “fair ranking” measures in its search results and provide publishers with more control over how their content is used, particularly in AI-generated output.
Considering Google’s dominant position in search and search advertising, the CMA is inclined to designate it as having “strategic market status” under the new digital market laws. This would entail Google adhering to a set of conduct rules, with a final decision expected in October after a public consultation.
This move makes Google the inaugural target under the UK’s new digital laws, which aim to regulate businesses with significant influence in specific digital markets.
The CMA’s investigation, initiated in January, focused on whether Google’s dominance in search and advertising was benefiting consumers and businesses in the UK.
Sarah Cardell, the CMA’s CEO, emphasized Google’s pivotal role as the world’s top search engine, with individuals in the UK conducting multiple searches daily. She remarked, “Our investigation indicates there are opportunities to enhance these markets, fostering openness, competition, and innovation.”
The CMA is also contemplating additional rules regarding search result rankings and requiring Google’s distribution partners like Apple to present “choice screens” for consumers to easily switch between search providers.
Google’s ownership by Alphabet has resulted in search advertising costs being higher than anticipated in a more competitive market, according to the CMA.
Google criticized the proposals, labeling them as “broad and unfocused,” and expressed concerns about potential limitations on the UK’s access to its latest products and services.
Oliver Bethell, Google’s senior competition director, cautioned that stringent regulations could impact the speed of product launches in the UK. He stressed the importance of proportionate, evidence-based regulation to prevent hindrances to growth.
Bethell’s warning underscores the potential consequences of regulations on the broader UK economy, especially as the government has tasked the CMA with promoting growth and investment while minimizing business uncertainty.
Last year, Google announced plans to invest $1 billion in a new data center near London, showcasing its commitment to the UK market.
The CMA’s investigation follows Google’s recent defeats in landmark US antitrust cases related to search dominance and advertising practices.
