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Google may be forced to make changes to UK online search, says watchdog | Google may be forced to make changes to UK online search, says watchdog |
(30 minutes later) | |
Google may have to make changes to its search services in the UK to ensure greater competition, the competition watchdog has said. | |
The Competition and Markets Authority (CMA) is investigating the US technology giant under a new law which means the regulator can demand changes at a firm if it is found to hold too much power in a particular market. | |
Google accounts for more than 90% of searches in the UK and 200,000 businesses use the company's search advertising to reach customers. | Google accounts for more than 90% of searches in the UK and 200,000 businesses use the company's search advertising to reach customers. |
The company, which is owned by Alphabet in the US, said the CMA's suggestions were "broad and unfocused" but added it would "work constructively" with the regulator. | |
The CMA said it was not accusing Google of anti-competitive practices at this time, but it has set out a "roadmap" of changes the company could make to its business ahead of a final decision in October. | The CMA said it was not accusing Google of anti-competitive practices at this time, but it has set out a "roadmap" of changes the company could make to its business ahead of a final decision in October. |
These could include requiring "choice" screens for users to access different search providers as well as more transparency and control for publishers whose content appears in search results. | These could include requiring "choice" screens for users to access different search providers as well as more transparency and control for publishers whose content appears in search results. |
The watchdog said the average person in the UK makes between five and 10 searches a day and businesses spend an average £33,000 a year on Google adverts, but if competition was working well the figure could be lower. | |
"Google search has delivered tremendous benefits but our investigation so far suggests there are ways to make these markets more open, competitive and innovative," said CMA chief executive Sarah Cardell. | |
She said that proposed "targeted and proportionate" changes "would give UK businesses and consumers more choice and control over how they interact with Google's search services". | |
But Google said that the outcome of the investigation and the suggested changes "could have significant implications for businesses and consumers in the UK". | |
The watchdog launched an investigation into Google in January, which it said would look at ensuring fair competition in online search. | The watchdog launched an investigation into Google in January, which it said would look at ensuring fair competition in online search. |
Google's search operations have faced heightened scrutiny by other regulators. | Google's search operations have faced heightened scrutiny by other regulators. |
A US judge ruled last August that the company had operated an illegal search monopoly. | A US judge ruled last August that the company had operated an illegal search monopoly. |
It has also faced European Union enforcement action, including a €2.4bn (£2bn) fine for allegedly "self-preferencing" its Shopping comparison service in results. | It has also faced European Union enforcement action, including a €2.4bn (£2bn) fine for allegedly "self-preferencing" its Shopping comparison service in results. |