UK tightens regulations on Google’s search dominance

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Google may be compelled to alter its search operations in the UK after becoming the first firm to fall under new authorities granted by Britain’s competition watchdog to address Big Tech dominance. Regulators have long scrutinized Alphabet-owned Google, and last Friday’s landmark decision classified Google as holding a strategic position in the online search market, empowering the UK authorities to intervene more effectively.

“We’ve determined that Google holds a dominant role in search and search advertising, with over 90% of searches in the UK conducted on their platform,” stated Will Hayter, the Executive Director for Digital Markets at the Competition and Markets Authority (CMA).

Potential Regulatory Actions

This designation enables the CMA to step in to promote genuine competition in search services. While it doesn’t accuse Google of any illegal activity or require immediate changes, it grants authority to impose fines for non-compliance and enforce measures directly.

The CMA has outlined possible interventions, including ensuring fairer ranking algorithms, providing consumers easier access to alternative search engines, and granting publishers more control over how their content is utilized in AI-generated responses. The agency plans to seek public input later this year on these proposals.

Google’s Senior Competition Director, Oliver Bethell, expressed concern that proposed changes could hinder innovation and slow down the rollout of new products amidst rapid AI advancements. Last month, Google announced a British investment of £5 billion ($6.65 billion).

New Challenges for Google

This recent ruling marks the first use of Britain’s expanded powers to challenge Big Tech firms. The CMA is also investigating Android OS and could assign a similar dominant status to Google’s mobile platform.

Meanwhile, US authorities—specifically the Federal Trade Commission and the Department of Justice—are examining Google and Amazon’s search advertising practices and considering forcing Google to divest some advertising technologies.

The European Union previously fined Google approximately $3.45 billion for anti-competitive conduct in its advertising technology sector last month.

Enhanced Consumer and Publisher Protections

Legal experts suggest that political shifts in the UK might make such major interventions less likely. Following its expanded powers, the CMA has been directed to prioritize growth and reduce uncertainty for businesses. In January, the government appointed former Amazon executive Doug Gurr as interim CMA chair.

Tom Smith, a competition lawyer at Geradin Partners and former CMA official, advocates for removing distortions caused by Google’s monopoly. He emphasizes giving website owners more control over the use of their content for AI training and reducing some of Google’s unfair advantages over other AI firms.

While the CMA clarified that Google’s Gemini AI assistant does not fall under the recent ruling, other AI-driven features like AI Overviews and AI Mode are included.