UK watchdog proposes first-ever curbs on Google Search; pushes for more transparency

New Delhi: Britain’s competition watchdog, the Competition and Markets Authority (CMA), has proposed sweeping changes to Google’s search engine operations, aiming to curb the tech giant’s dominance and foster a more competitive digital market.

The move marks the first use of expanded powers under the Digital Markets, Competition and Consumers Act, which came into force earlier this year.

The CMA announced on Tuesday that it is consulting on designating Alphabet-owned Google with “strategic market status” (SMS) due to its overwhelming control of the UK search market, where it handles over 90% of search queries. If finalised in October following a consultation process, this designation could force Google to implement “fair ranking” measures, enhance transparency for publishers, simplify access to rival search services, and facilitate data portability for competitors.

CMA Chief Executive Sarah Cardell emphasised the dual nature of Google’s impact. “Google search has delivered tremendous benefits, but our investigation suggests there are ways to make these markets more open, competitive, and innovative,” she said. The regulator’s proposed actions aim to give UK businesses and consumers greater choice while unlocking innovation across the tech sector.

The CMA’s intervention could have far-reaching implications, particularly for publishers. Sebastian Cuttill of the News Media Association told the BBC that increased transparency over Google’s use of news content in AI-powered features, such as AI Overviews, would be “massive” for the industry. 

Google, which accounts for more than 200,000 UK businesses relying on its search advertising, pushed back against the proposals. Oliver Bethell, Google’s senior director of competition, argued that the CMA’s approach is “broad and unfocused” and lacks evidence of anti-competitive behaviour. “Punitive regulations could change” the UK’s access to Google’s latest innovations, he warned, highlighting the risk of stifling growth.

The regulator’s focus extends beyond traditional search to Google’s AI-driven features, though its Gemini AI Assistant is currently excluded from the proposed designation. The CMA noted that the rise of generative AI could disrupt the search market, and it will monitor evolving usage.

This move aligns with global scrutiny of Google’s search practices. In August 2024, a US judge ruled that Google operated an illegal search monopoly, while the European Union has imposed fines, including a €2.4 billion penalty in 2017 for favouring its own shopping service, upheld by the bloc’s top court in 2024. 

Recently, Google offered to tweak search results to promote rivals in the EU to avoid further antitrust fines, but competitors deemed the changes insufficient.

The CMA’s targeted approach contrasts with the EU’s broader digital regulations, focusing on specific interventions to lower search advertising costs, equivalent to nearly £500 per UK household annually, and encourage alternatives, including AI-driven search startups.

The final decision is expected in October 2025.