Google could be forced to change its search operations in the UK after it became the first company subject to new powers from Britain’s competition regulator to tackle the dominance of Big Tech.
Competition regulators have long had Alphabet-owned Google in their sights and Britain’s landmark ruling yesterday 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 per cent 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. It is expected to consult on any planned interventions later this year.
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 $6.65 billion in Britain. The ruling was the CMA’s first under new powers to tackle Big Tech.
The CMA’s second probe into mobile operating systems could also result in Google receiving a designation, focused on Android.