UK regulators push Google for more competition in search

Google, the dominant force in online search with over 90% market share in the UK, is facing increasing pressure from the Competition and Markets Authority (CMA) to open up its services and offer consumers more choice.

The CMA’s investigation, operating under new legislation that allows it to demand changes from companies with significant market power, aims to foster a more competitive and innovative digital landscape.

While the CMA isn’t currently accusing Google of anti-competitive practices, it has outlined a “roadmap” of potential changes ahead of a final decision in October.

These proposals include requiring “choice” screens for users to easily select different search providers and enhancing transparency and control for publishers whose content appears in search results. The watchdog believes that despite the “tremendous benefits” Google Search has delivered, there are clear opportunities to improve competition.

Google’s parent company, Alphabet, has deemed the CMA’s suggestions “broad and unfocused” but has pledged to “work constructively” with the regulator. A Google spokesperson warned that “punitive regulations” could impact the UK’s historical access to Google innovations and that the proposed changes “could have significant implications for businesses and consumers.”

The investigation, launched in January, has gathered feedback from 47 organizations, including airlines and media publishers, detailing how Google’s search practices affect them. For example, some airlines reported that changes made by Google to comply with the EU’s Digital Markets Act led to increased traffic to online travel agencies that sometimes misrepresented their services.

The CMA’s intervention could also have significant implications for the burgeoning field of AI-powered search, such as Google’s AI Overviews. News organizations are particularly interested in greater transparency and compensation for the use of their content in developing these AI tools.

This push for increased competition in the UK mirrors similar regulatory scrutiny Google faces globally, including an illegal search monopoly ruling in the US and substantial EU antitrust fines.