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Google may soon face new requirements in the UK aimed at providing consumers with more choice over which online search services they use, according to the country’s competition watchdog.
The UK’s Competition and Markets Authority (CMA) is investigating the tech giant under a new law that allows the regulator to demand changes if it finds that a company holds too much power in a particular market.
Google currently dominates the UK search market, accounting for over 90% of searches, with approximately 200,000 businesses using its search advertising services to reach customers, as reported by the BBC.
Alphabet, Google’s parent company, has criticized the CMA’s proposed changes, calling them “broad and unfocused.” However, the company has said it will “work constructively” with the regulator moving forward.
The CMA, which is not accusing Google of anti-competitive behavior at this stage, has outlined a “roadmap” for potential changes to the company’s operations.
These changes could include requiring “choice” screens for users to access different search providers and offering more transparency and control for publishers whose content appears in search results. A final decision is expected in October.
According to the CMA, the average person in the UK conducts between five and ten searches per day, and businesses spend an average of £33,000 annually on Google advertisements. The watchdog believes that, if competition were functioning properly, this figure could be lower.
“Google search has delivered tremendous benefits but our investigation so far suggests there are ways to make these markets more open, competitive and innovative,” said CMA Chief Executive Sarah Cardell.
She added that the proposed changes would give UK businesses and consumers more choice and control over how they interact with Google’s search services.
However, Google expressed concerns over the potential outcomes of the investigation. A company spokesperson said that while the CMA has reiterated that “strategic market status” does not equate to accusations of anti-competitive behavior, the investigation and proposed changes “could have significant implications for businesses and consumers in the UK.”
They also cautioned that the UK has historically benefited from early access to Google innovations, but this could change as a result of what they described as “punitive regulations.”
Concerns from Businesses and Publishers
The CMA’s investigation, which was launched in January, aims to ensure fair competition in online search. It has heard from 47 organizations, including airlines, adult online retailers, and media publishers, about how Google’s search practices help or hinder their businesses.
EasyJet, for example, noted that changes to the search engine resulting from the European Union’s Digital Markets Act had diverted more customers to online travel agencies, which misrepresented the airline’s services and prices.
In response, Google stated that increasing the visibility of rival search engines and comparison sites was part of the required changes under the EU law. However, the company claimed this move had hurt airlines and hotel operators by reducing direct traffic to their websites.
Meanwhile, LoveHoney and Ann Summers, which sell sex toys, lingerie, and sexual wellness products, raised concerns about Google’s SafeSearch feature, which censors explicit results and has affected the “discoverability” of their sites.
Trade association UK Hospitality also warned that the UK should be cautious about adopting similar search requirements to those in the EU, fearing they could create “unintended consequences” for both businesses and consumers.
Implications for Artificial Intelligence
Sebastian Cuttill, of the News Media Association, highlighted that the CMA’s intervention could have significant implications not just for traditional search engines but also for AI-powered alternatives, such as Google’s own AI Overviews.
He argued that increasing transparency over how news content is used by tech firms to develop AI tools would be “massive” for publishers.
News organizations, including the BBC, have expressed concerns about the use of their content to train AI systems without consent or compensation. “This measure would pursue the statutory objectives of fair dealing and trust and transparency,” Cuttill said.
Global Scrutiny
Google’s search operations have come under increased scrutiny by regulators in other countries as well.
In August, a US judge ruled that the company had operated an illegal search monopoly. Additionally, the European Union has imposed multiple enforcement actions, including a €2.4 billion (£2 billion) fine for allegedly “self-preferencing” its Shopping comparison service, a penalty that was upheld by the bloc’s top court last year.