UK Regulator Proposes New Rules to Curb Google's Search Dominance

Reviewed byNidhi Govil

22 Sources

The UK's Competition and Markets Authority (CMA) is considering designating Google with "strategic market status," which could lead to new regulations on its search engine operations, including fair ranking measures and increased publisher control over content use in AI-generated results.

UK Regulator Targets Google's Search Dominance

The UK's Competition and Markets Authority (CMA) has proposed designating Google with "strategic market status" (SMS) under new digital market rules, potentially leading to significant changes in how the tech giant operates its search engine in the country 1. This move marks the first application of Britain's tough new digital market laws and could require Google to implement various measures to promote competition and fairness in the search market 2.

Source: PYMNTS

Source: PYMNTS

Proposed Measures and Their Impact

The CMA is considering several key measures to address Google's market dominance:

  1. Fair Ranking: Google may be required to implement new "fair ranking" principles for its search results, ensuring a more level playing field for businesses appearing in search 1.

  2. Publisher Control: Publishers could gain more control over how their content is used in search results and AI-generated outputs, including Google's AI Overviews and Gemini AI Assistant 2.

  3. Choice Screens: Google's distribution partners, such as Apple, may be required to offer "choice screens" to help consumers more easily switch between search providers 1.

  4. Data Portability: Users could be given the ability to transfer their data, including search history, between different search services 2.

Market Dominance and Advertising Costs

Source: The Register

Source: The Register

The CMA's investigation, which began in January 2025, examined whether Google's position in search and advertising was delivering good outcomes for UK consumers and businesses 1. The regulator found that Google's dominance has led to higher search advertising costs than would be expected in a more competitive market 3.

Sarah Cardell, the CMA's chief executive, noted that UK businesses spent more than £33,000 per advertiser on Google search ads in the previous year 2. With Google accounting for over 90% of all general search queries in the UK, the CMA aims to make the market more open, competitive, and innovative 4.

Google's Response and Concerns

Google has criticized the CMA's proposals as "broad and unfocused," expressing concern that they could threaten the UK's access to its latest products and services 5. Oliver Bethell, Google's senior director for competition, warned that "punitive regulations" could affect how quickly Google launches new products in the UK 5.

Source: Bloomberg Business

Source: Bloomberg Business

Next Steps and Timeline

The CMA is currently collecting opinions on the proposed SMS designation and measures from industry stakeholders. A final decision on the designation is expected by October 13, 2025 4. If implemented, these changes could significantly alter the landscape of online search and advertising in the UK, potentially opening up opportunities for increased competition and innovation in the tech sector.

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