Recent developments in the UK may compel Google to revamp its search engine, following a significant decision from the Competition and Markets Authority (CMA). This regulator has granted Google “strategic market status” under new legislation that took effect in January.
Regulatory Framework and CMA’s Findings
The CMA did not accuse Google of wrongdoing at this stage. Instead, this designation facilitates what the CMA describes as “proportionate, targeted interventions” aimed at enhancing market competitiveness. Google is concerned that such measures could hinder innovation and growth within the UK.
Oliver Bethell, Google’s competition lead, emphasized the benefits of the current system. He stated that UK consumers and businesses have consistently enjoyed the earliest access to Google’s innovations, often ahead of their European counterparts. In 2023, Google Search contributed approximately £118 billion to the UK economy.
CMA’s Market Position Assessment
The CMA affirmed Google’s substantial market presence, noting that over 90% of online searches in the UK occur on its platform. CMA digital markets head Will Hayter remarked on Google’s strategic position in both search and search advertising sectors, confirming its designation.
Potential Market Interventions
The CMA has revealed a preliminary roadmap outlining possible intervention measures. These may include:
- Implementing “choice screens” for users to view alternate search engines.
- Enhancing publishers’ control over content usage.
- Establishing “fair principles” for website ranking in search results.
- Creating an effective complaints process for businesses regarding their search listings.
Reactions and Broader Regulatory Action
The CMA’s decision has received positive feedback from consumer advocacy groups. Rocio Concha, policy leader at Which?, called the move a vital step in addressing Google’s market dominance. She highlighted the necessity of CMA’s intervention, particularly as online search evolves with the rise of GenAI tools.
Globally, Google faces increasing scrutiny. Recently, the US Supreme Court declined to step in on a ruling necessitating major changes to the Google Play Store, while it successfully defended itself against demands to divest its Chrome and Android operations.
In September, the European Union imposed a fine of €2.95 billion (£2.5 billion) on Google for allegedly abusing its power in the advertising technology sector.
