UK opens door to tougher regulation of Google search

"Britain's competition watchdog on Friday paved the way for tougher regulation to tackle Google's dominance in online search, under new targeted measures focused on technology giants. The Competition and Markets Authority said it has designated Google with "strategic market status" (SMS), subjecting it to special requirements, in a final decision following a nine-month investigation. "We have found that Google maintains a strategic position in the search and search advertising sector," Will Hayter, executive director for digital markets at the CMA, said in a statement."

"Google warned the UK against "unduly onerous regulations" and urged it to learn from "negative results seen in other jurisdictions", referencing the EU's DMA. "Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth," said Oliver Bethell, Google's senior director for competition. Google added Friday that unfavourable regulation could slow the launch of new product launches in the UK."

The Competition and Markets Authority designated Google with strategic market status after a nine-month investigation, subjecting the company to special requirements targeted at dominant technology firms. The designation covers search and search advertising and includes AI-based search features, while Google's Gemini AI assistant remains under review. The CMA will launch a consultation this year to determine specific rules and potential interventions, similar in aim to the EU's Digital Markets Act which carries the potential for large fines. Google warned against unduly onerous regulation, argued some interventions could inhibit UK innovation and growth, and highlighted a recent £5 billion investment commitment to UK AI.

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