The future of Google’s search business in the UK has been cast into uncertainty after the nation’s competition regulator gained the power to force changes upon the company. The Competition and Market Authority (CMA) has designated Google with “strategic market status,” a move that subjects the tech giant to a new and more stringent regulatory framework.
This action is the first significant use of the UK’s Digital Markets, Competition and Consumers Act 2024. The decision to apply this status to Google was based on its dominant market position, including its control of over 90% of UK searches. The designation allows the CMA to proactively address what it sees as potential competition issues.
The regulator is now weighing a series of potentially far-reaching interventions. These include requiring Google to offer users a “choice screen” of alternative search engines, including AI-native platforms. The CMA is also exploring ways to ensure the fairness of search rankings and to give online publishers more say in how their content is used by Google’s AI.
Google has responded by highlighting the potential negative consequences for UK consumers and innovation. A company spokesperson expressed concern that the proposed regulations could create hurdles for launching new products and services in the country. This view is challenged by those who believe that reigning in Google’s power is essential for a healthy digital economy.
The CMA has confirmed that it will launch a public consultation this year to gather feedback on its proposed changes. The outcome of this process will be crucial in determining the new rules of the road for Google in the UK. The regulator is also currently assessing whether to apply the same strategic status to Apple and Google’s powerful mobile platforms.
