Google may face stricter regulation in the UK after a ruling by the Competition and Markets Authority (CMA).
Today it ruled that the legal test had been met to designate the search giant with “strategic market status” (SMS) in general search and search advertising services.
This doesn’t mean that there has been any wrongdoing, nor does it introduce any immediate requirements on Google. However, it will allow the CMA to consider “proportionate, targeted interventions to ensure that general search services are open to effective competition, and that consumers and businesses that rely on Google can have confidence that they are treated fairly.”
The UK’s new digital markets competition regime came into being on 1st January this year, allowing CMA to take “targeted and proportionate” action to improve competition in digital markets.
An investigation into Google’s general search and search advertising began on 14th January, with a consultation starting this summer.
Since then the CMA has received feedback from more than 80 stakeholders as well as speaking directly with Google.
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It concluded this afternoon that Google has: “substantial and entrenched market power in general search and search advertising and has been designated with strategic market status.”
Its AI assistant, Gemini is not in scope of the designation, but that will be kept “under review”
However, AI Overviews and AI Mode do fall within this, as does its Discover feed and Top Stories tab.
“By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy,” said Will Hayter, Executive Director for Digital Markets at the CMA.
“We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform.
“Having taken into account the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status.”
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The CMA expects to begin consulting on possible interventions later in the year.
“The CMA’s decision, confirming that Google has strategic market status in search, is a turning point in the fight for a fair and competitive digital economy in the UK. Search is a key discovery path for users accessing news online and Google has wielded its dominance to the detriment of users and publishers,” said News Media Association’s Chief Executive Owen Meredith in response to the decision.
“The CMA must now push ahead with remedies and put in place a robust set of conduct requirements to ensure publishers have genuine control over when and how their valuable content is used: that means real transparency, meaningful consent, and fair payment.
“The British government must also stand firm and continue to resist pressure from the US President, bidding on behalf of Silicon Valley, to dilute pro-competition remedies under the guise of ‘innovation’. By taking this action, the CMA is ensuring the long-term sustainable growth of the UK tech and creative sectors.”
