UK Regulator Targets Google’s Search Dominance
The UK’s competition watchdog, the Competition and Markets Authority (CMA), is poised to demand significant changes to Google’s search business, citing concerns over the tech giant’s dominant position in the online search market. Operating under new legal powers granted by the Digital Markets, Competition and Consumers Act, the CMA is “minded to introduce bespoke regulatory measures” aimed at fostering greater competition and offering users more choice.
The regulator intends to designate Google with “strategic market status,” a classification identifying tech companies with substantial market power. While the CMA emphasizes it is not currently accusing Google of anti-competitive behaviour, its investigation has highlighted areas where the market could be more open and innovative. A final decision on the designation is anticipated in October.
Proposed Changes: More Choice and Transparency
In its preliminary “roadmap,” the CMA has outlined key changes Google might be required to implement. These proposals are designed to enhance user choice and level the playing field for rival services:
Search Choice Screens: Users could be presented with options to easily select and switch between different search providers. This is seen as a crucial step to break the dominance of Google’s default position and could potentially include visibility for newer AI-powered search alternatives like Perplexity and ChatGPT.
Publisher Control and Transparency: The CMA is pushing for greater control and transparency for online publishers regarding how their content is used by Google, particularly in features like AI-generated responses (such as AI Overviews). This addresses concerns from news organisations and other publishers about their content being used without consent or fair compensation.
Fair Ranking: Ensuring search results are ranked fairly, aiming to prevent potential biases that might favour Google’s own services over competitors.
These initial measures represent a first wave of interventions, with the CMA acknowledging that more complex issues, including the treatment of rival specialised search platforms and transparency within search advertising, will be addressed in subsequent phases starting in 2026. Action on controversial “default agreements,” where Google pays companies like Apple to be the default search engine, is being delayed pending the outcome of a related US court case.
Google’s Grip on UK Search
The basis for the CMA’s intervention lies in Google’s overwhelming presence in the UK market. The company accounts for over 90% of online search queries in the country. This dominance extends significantly to search advertising, where approximately 200,000 UK businesses rely on Google to reach customers, spending an average of £33,000 per year on adverts. The regulator suggests that increased competition could potentially lead to lower costs for these businesses. On average, people in the UK conduct between five and ten searches daily, underscoring the central role search plays in digital life.
Industry Voices Weigh In
The CMA’s investigation included consultation with 47 organisations across various sectors, revealing a range of experiences with Google’s search practices:
Airlines: Companies like EasyJet reported negative impacts from search changes made in the EU to comply with the Digital Markets Act. They claimed these changes directed more customers to online travel agencies that sometimes misrepresented services, harming direct traffic to airline and hotel websites.
Adult Retailers: Businesses such as LoveHoney and Ann Summers raised concerns that Google’s SafeSearch feature, which filters explicit results, negatively impacted the “discoverability” of their sites through standard search.
News Publishers: News media organisations expressed a strong desire for increased transparency regarding the use of their content in AI development and search features. They view CMA intervention as vital for ensuring “fair dealing and trust and transparency” in how tech firms leverage their journalistic output.
- Hospitality: The UK Hospitality trade association cautioned against adopting search requirements akin to those in the EU, warning of potential “unintended consequences” for businesses and consumers.
- www.bbc.com
- www.theguardian.com
- thefinancialexpress.com.bd
- www.bbc.com
- www.bbc.com
Google Responds: “Broad & Unfocused”
Google’s parent company, Alphabet, has reacted critically to the CMA’s preliminary findings and proposed remedies. They described the suggestions as “broad and unfocused” but committed to working constructively with the regulator.
A Google spokesperson stated that while the CMA acknowledges that “strategic market status” does not imply anti-competitive behaviour has occurred, the announcement presents “clear challenges” to their UK business. They expressed concern that the outcome could have “significant implications for businesses and consumers.” Google also suggested that what they perceive as “punitive regulations” could jeopardise the UK’s historical advantage of early access to Google’s latest product innovations.
Global Scrutiny Mirroring UK Action
The scrutiny Google faces in the UK is not isolated. Regulators around the world are increasingly examining the company’s search practices. A US judge ruled last August that Google operated an illegal search monopoly. The company has also faced significant enforcement action from the European Union, including a €2.4 billion fine (upheld by the EU’s top court) for allegedly “self-preferencing” its own Shopping comparison service within search results.
What Happens Next?
Following the expected decision on Google’s designation in October, the CMA will proceed with a consultation on the first wave of bespoke measures. The regulator’s actions signal a new era of stricter oversight for major tech platforms in the UK, with the goal of fostering a more competitive and user-centric online search environment. The proposed changes, described by CMA chief executive Sarah Cardell as “targeted and proportionate,” aim to give UK businesses and consumers greater choice and control over their online search experience.
