Google facing push by UK competition watchdog to loosen control on search
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The news: The UK’s Competition and Markets Authority (CMA) may require Google to loosen its grip on its search engine under new digital market rules.
The context: The CMA’s investigation, launched in January this year, is looking into whether Google’s position in search is delivering good outcomes for consumers and business in the country.
Under the new Digital Markets Competition Regime, the CMA is proposing to designate Google with “strategic market status”, which would allow the watchdog to introduce targeted measures addressing aspects of how the tech giant operates in the UK.
The CMA is set to deliver its final decision on the designation by October, after a public consultation has concluded.
Potential actions could include: requiring choice screens for users to access different search providers; ensuring fair ranking principles for businesses appearing on Google search; and more transparency and control for publishers whose content appears in search results.
In response to the CMA update, Google said that while the CMA designation would not imply that anti-competitive behaviour has taken place, “this announcement presents clear challenges to critical areas of our business in the UK.”
“We’re concerned that the scope of the CMA’s considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided,” the tech giant said via a blog.
Google added that the UK has historically benefitted from early access to Google innovations, “but punitive regulations could change that. Proportionate, evidence-based regulation will be essential to preventing the CMA’s roadmap from becoming a roadblock to growth in the UK.”
The numbers: The CMA said that Google search accounts for over 90% of all general search inquiries in the UK and more than 200,000 British businesses rely on Google search advertising to reach their customers.
Google also said: “The positive impact of Google Search on the UK is undeniable. Our tools and services contribute billions of pounds a year to the UK — £118 billion ($246.66 billion) in 2023 alone.”
