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UK competition regulators suggest relaxing control of Google’s search engines to first apply the UK’s strict new digital market rules.
The Competitive Markets Bureau said Tuesday that Google should implement new “fair rankings” measures in search results, and that publishers need more control over how they use content, including output generated by artificial intelligence.
The CMA said it is in mind that Google’s “strategic market situation” (the label introduced under this year’s new digital market law) requires compliance with many such rules of conduct in light of its dominant position in search and search advertising. After public consultations, a final decision will be made by October.
The Big Tech giant has become the first company to be targeted under strict new UK digital laws that require companies that have a significant impact on certain digital markets to be given SMS labels and to receive certain rules.
A CMA survey launched in January looked at whether Google’s position in search and advertising “provides good results” for UK consumers and businesses.
“Google is one of the world’s leading search tools and plays an important role in all of our lives. The average person in the UK searches five to 10 times a day,” says Sarah Cardell, CEO of CMA. “Previous research suggests there are ways to make these markets more open, competitive and innovative.”
Other rules of conduct considered by the CMA include search results and requirements for how Google’s distribution partners, such as Apple. Instead of providing the world’s most used search engine by default, the company may need to provide a “selection screen” to help consumers switch between search providers more easily.
The CMA said that the cost of search ads in a more competitive market is “higher than expected” due to the advantage of alphabet-owned Google.
Google on Tuesday denounced the proposal as “broad and unfocused” and said it could threaten access to the UK’s latest products and services.
Oliver Bethell, senior director of Google’s competition, warned that “punitive regulations” could change the speed at which Google launches new products in the UK.
“Proportional evidence-based regulations are essential to prevent the CMA roadmap from becoming a barrier to UK growth,” he added.
Bethel’s warning of the potential impact of regulations on the wider UK economy comes after the government explicitly required CMAs to focus on supporting growth and investment while minimizing corporate uncertainty.
Last year, Google said it plans to invest $1 billion in a huge new data center just outside London.
The CMA probe comes after Google lost its historic US antitrust laws surrounding search control and lucrative advertising businesses.
