Google faces stricter regulation in UK over search dominance

"Competition regulators have long had Alphabet-owned Google in their sights and Britain's landmark ruling on Friday designating Google as having strategic market status in online search, gives the UK's regulator more power to step in. "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," the Competition and Markets Authority's Executive Director for Digital Markets Will Hayter said."

"The CMA's move enables it to intervene to ensure Google's search services are "open to effective competition". It is not a finding of wrongdoing and does not trigger any immediate changes, but the regulator can impose fines for non-compliance and has direct enforcement powers. It outlined changes it could require in June, such as fairer ranking in search, easier access to alternative search engines for consumers and more controls for publishers over how their content is used in AI-generated responses."

"Google's Senior Director for Competition Oliver Bethell said: "Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation." Google announced last month it would invest 5 billion pounds ($6.65 billion) in Britain. NEW FRONT AGAINST GOOGLE The ruling was the CMA's first under new powers to tackle Big Tech."

The Competition and Markets Authority designated Google as having strategic market status in online search after finding Google handles more than 90% of UK searches. The designation grants the CMA powers to require changes to ensure search services face effective competition, including fines and direct enforcement. Potential interventions include fairer ranking, easier consumer access to alternative search engines, and stronger controls for publishers over AI use of their content. Google warned proposed interventions could inhibit UK innovation and slow AI-driven product launches. The CMA is also probing mobile operating systems, with Android a possible focus. Google pledged a 5 billion pound investment in Britain.

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