Hustler Words – The UK’s Competition and Markets Authority (CMA) has officially designated Google Search with "strategic market status," paving the way for stricter regulations aimed at fostering fair competition in the digital landscape. This landmark decision follows a nine-month investigation and grants the CMA greater power to scrutinize and potentially reshape how Google operates its search services within the country.
The designation signifies that Google holds such a dominant and entrenched position in the search and search advertising markets that special regulatory oversight is warranted. According to a CMA report, "Google has had an unparalleled position in this digital activity for an extended period… No traditional general search providers have materially grown relative to Google for at least fifteen years." While the designation itself doesn’t imply any prior wrongdoing or impose immediate changes, it opens the door for further assessments and interventions.
The CMA’s scrutiny extends to Google’s core search functions, online search advertising, AI-powered search features like AI Overviews and AI Mode, as well as the "Discover" feed and "Top Stories" sections. Notably, the Google News app and website, along with search syndication services, are currently excluded from this designation. However, the CMA has indicated that it will closely monitor the evolving AI search market and may later include Google’s Gemini AI assistant within the scope of the regulations.
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Potential enforcement actions being considered by the CMA include measures to empower UK residents to choose and easily switch between search engines via choice screens, implementing data portability systems, ensuring fair ranking of search results, enforcing proper attribution of publishers’ work in search results, and establishing consent mechanisms for Google’s AI services. The regulator plans to launch a consultation on possible interventions later this year.
Google has voiced concerns that these interventions could stifle innovation in the UK. In a blog post, the company argued that "The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as Search. Retaining this position means avoiding unduly onerous regulations and learning from the negative results seen in other jurisdictions." Google further cautioned that some proposed interventions could harm businesses and potentially lead to price increases for consumers.
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