After a nine-month probe of Google's nether regions, the Competition and Markets Authority said the search and ads giant qualifies for “strategic market status” under fresh UK digital laws. The label brings bespoke rules designed to stop a dominant player throwing its weight about.
The watchdog will consult later this year on remedies, including “fair ranking” in search results and giving publishers more say over how their material is used, including by artificial intelligence.
The CMA flagged that AI Overviews and AI Mode fall within the new regime, while Google’s Gemini assistant is excluded for now and will be kept under review.
CMA, executive director for digital markets, Will Hayter said: “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.”
He added: “By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy.”
Google reckons the UK benefits from lighter-touch rules and warned ministers not to get carried away. Google, senior director for competition, Oliver Bethell said:
“The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as Search. Retaining this position means avoiding unduly onerous regulations."
Google waved its chequebook last month, saying it will spend £5bn (€5.8bn) in the UK over two years on data centres and AI research. DeepMind bodies sit in London, and the company is polishing a new King’s Cross office.
Despite the bravado, Google muttered that a hostile regime could delay shiny product launches in Blighty.
Mobile platforms are under the microscope. The CMA is weighing similar SMS badges for Google and the Fruity Cargo Cult Apple, with a decision due this month. If Job’s Mob gets dragged in, expect more gnashing of teeth from Cupertino’s finest briefs.
All this lands while the CMA tries to show it can enforce rules without scaring off investment and while Whitehall leans on it to focus on growth.