"The designation means Google's search and ads business will be subject to a regulatory oversight regime that has a similar intent as the EU's Digital Markets Act. The decision, announced on Friday by the UK's Competition and Markets Authority (CMA), follows the country enacting a "pro-competition" reform of digital competition rules at the start of the year to tackle the outsized market power of big tech."
"The SMS designation means Google search and ads could face bespoke interventions by the CMA aimed at relieving competitive pain-points. Back in June, the CMA suggested it could ask Google to provide users with alternative search options, such as by making it show choice screens. Other ideas included rules to ensure Google serves "fair and non-discriminatory" search results, support for data portability, and more controls and transparency for publishers over how their content is used by Google for search and in any AI-generated responses it serves."
Google has been designated with strategic market status (SMS) by the UK's Competition and Markets Authority for its general search and search advertising businesses. The designation subjects Google's search and ads to a regulatory oversight regime intended to mirror aspects of the EU's Digital Markets Act. SMS enables the CMA to require remedies aimed at easing competitive pressures, including choice screens, fair and non-discriminatory result rules, data portability measures, and greater publisher transparency regarding content use and AI-generated responses. Google acknowledged new rules are likely and warned that some proposed interventions could inhibit innovation and slow product launches in the UK.
Read at Euractiv
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