The UK gives Google Search special market status, making way for stricter regulations

The UK Competition and Markets Authority (CMA) on Friday specific Google has a special status in the online search market that would enable the regulator to impose stricter regulations.

The Capital Markets Authority has classified Google as having a “strategic market position” in the search and search advertising markets, meaning that the company has such a “large and well-established” position that it requires special regulations to ensure fair competition.

“Google has had an unparalleled position in this digital activity for a long time. Other traditional general search providers are much smaller than Google and have been so for many years. Bing is the largest of these providers, but its current shares of search queries and ads are less than 5%. “None of the traditional general search providers have achieved material growth,” the CMA wrote in a statement. “Compared to Google for at least fifteen years.” a report.

The Capital Markets Authority said that although the classification does not mean that the Capital Markets Authority has found evidence of violations and does not present any immediate requirements, it opens the doors to launch more evaluations and introduce interventions to change how Google manages its search services in the country.

The classification covers Google search services and online search advertising; AI-powered search features like AI Overviews and AI Mode, Discover feed and results, as well as the Top Stories and News tab. The Google News app and website are not covered, and search sharing services are also out of scope.

However, the CMA noted that while Google Assistant Gemini AI is not currently covered by the designation, it will review the scope of the designation given the uncertainty about how the AI ​​search market will develop.

The regulator said it would launch a consultation on potential interventions later this year.

This move comes after nine months investigation It was launched at the company earlier this year after the UK’s new competition regime for digital markets came into force in January. The CMA was looking to establish whether Google was enabling weak competition and “barriers to entry and innovation in search”; Whether the company prefers its own services to those provided by third parties; If it uses consumer data without their explicit consent.

Capital Markets Authority Road map Potential enforcement actions may include: enabling UK residents to choose and switch search engines via selection screens; Implementing data transmission systems; Enforce fair ranking of search results; Ensuring correct attribution of publishers’ work in research; and enable consent mechanisms for Google AI services.

Google, for its part, says any interventions after the designation would hurt innovation in the UK. “The UK has access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as search,” the company wrote in a statement. “Maintaining this position means avoiding unduly burdensome regulation and learning from the negative outcomes seen in other jurisdictions, which have cost companies an estimated About 114 billion euros. Blog post.

She added: “Many of the intervention ideas raised in this process would inhibit innovation and growth in the UK, potentially slowing product launches at a time of deep AI-driven innovation. Others pose direct harm to businesses, with some warning they may be forced to raise prices for customers.”