LONDON — Google has “substantial and entrenched market power” in online search meaning it will likely face restrictions in the U.K. to curb its dominance, the country’s competition watchdog confirmed Friday.
The Competition and Markets Authority (CMA) said it would designate Google with “strategic market status” for search and search advertising, the first time it has used its new digital markets powers which came into force in January.
A consultation on what steps the regulator might take to stem that dominance, known as conduct requirements, will follow later this year, the CMA said.
Possible options include choice screens, meaning users can switch more easily between search engines; more transparency and control for publishers whose content is used in Google’s AI overviews; and portability of consumer search data.
Google said the CMA’s actions could delay product launches in the U.K.
Its senior director for competition Oliver Bethell said: “The U.K. 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 and learning from the negative results seen in other jurisdictions.”
He added: “Many of the ideas for interventions that have been raised in this process would inhibit U.K. innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.”
Google’s Gemini AI assistant is not in scope of the designation, but the CMA said its position will be “kept under review.”
Will Hayter, executive director for digital markets at the CMA, said: “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 U.K. economy.”
Google is the CMA’s first target under the Digital Markets, Competition and Consumers Act. It reached a provisional decision in June to designate Google. It is also intending to designate Google and Apple in mobile ecosystems, with a decision on that due later in October.
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