Key Points
- Britain’s competition regulator is using new powers to target Google’s dominance in the search market.
- The plan could force Google to rank businesses more fairly and provide consumers with more choices.
- Google warns the move is “punitive” and could harm its ability to innovate in the UK.
- The proposed rules will also cover Google’s new AI-powered search features.
Britain’s competition watchdog is targeting Google’s search monopoly, utilizing new and powerful rules that could potentially compel significant changes from the tech giant. The regulator, known as the Competition and Markets Authority (CMA), announced on Tuesday that it plans to designate Google as having “strategic market status,” a move that would give it the power to directly intervene in how the company operates its search business.
The CMA aims to ensure that Google ranks businesses more fairly in its search results and provides users with more choices. If the plan is implemented this October, Google may need to be more transparent with publishers and make it easier for competitors, including new AI assistants, to access its services.
The regulator says this is necessary because Google controls over 90% of the search market in Britain, acting as the main gateway to the internet for millions.
Google isn’t happy about it. The company warned that “punitive regulation” could stop it from bringing new features and services to Britain. A top executive called the regulator’s plan “broad and unfocused” and a potential “roadblock to growth.”
The CMA is also looking ahead, stating that its new rules will apply to Google’s new AI-powered search features, such as its “AI Overviews.” This is the first time the UK has used these new powers, which are designed to rein in the power of Big Tech without stifling innovation. It’s seen as a more targeted approach than the sweeping digital regulations in the European Union.
