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| Version 1 | Version 2 |
|---|---|
| Google could be forced to change UK search as watchdog takes steps | Google could be forced to change UK search as watchdog takes steps |
| (about 5 hours later) | |
| CMA proposes tightening regulation, which could lead to site giving users option to choose alternative services | CMA proposes tightening regulation, which could lead to site giving users option to choose alternative services |
| Business live – latest updates | Business live – latest updates |
| Google could be forced to make a series of changes to its search business, including giving internet users an option to choose an alternative service, after the UK competition watchdog proposed tightening regulation of the company. | |
| The Competition and Market Authority is preparing to give the world’s largest search engine the designation “strategic market status”, a term for tech companies deemed to have considerable market heft that enables the watchdog to use extra powers to regulate them. | |
| Google, which is owned by the US tech group Alphabet, accounts for more than 90% of search queries in Britain. | |
| The CMA said it was minded to introduce bespoke regulatory measures for Google, including giving users “choice screens” to help them switch between search services, ensuring fair ranking of search results, and providing more control for publishers over how their content is used, including in AI-generated responses. | |
| If the CMA confirms its decision in October, Google will be the first company designated since the regulator gained new powers this year. The CMA will then consult on the first wave of bespoke measures. | |
| One option for the “choice screens” would be to include new AI-powered rivals in the search space, such as Perplexity and ChatGPT. | |
| The CMA will also consider further action on other issues such as introducing more transparency into Google’s search advertising business. However, the CMA struck a note of caution on this second wave of potential measures, saying interventions in these areas “may be more complex to develop”. | |
| Sarah Cardell, the CMA chief executive, said the announcement marked an important milestone in a new regulatory regime under the recent Digital Markets, Competition and Consumers Act. | Sarah Cardell, the CMA chief executive, said the announcement marked an important milestone in a new regulatory regime under the recent Digital Markets, Competition and Consumers Act. |
| Cardell said: “These targeted and proportionate actions would give UK businesses and consumers more choice and control over how they interact with Google’s search services – as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy.” | Cardell said: “These targeted and proportionate actions would give UK businesses and consumers more choice and control over how they interact with Google’s search services – as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy.” |
| The CMA said it planned further action to address more complex issues over a longer period, starting in 2026, such as concerns about Google’s treatment of rival specialised search platforms and transparency and control in search advertising. | |
| The watchdog is also delaying action on “default agreements” where Google pays to be the search engine of choice on products such as the Apple iPhone until the conclusion of a court case between the company and the US department of justice – which is seeking to end such arrangements. | |
| The CMA also announced that it would delay a third strategic market status designation until next year. A verdict on designating Apple and Google’s smartphone platforms as worthy of the status is expected next month. | |
| Tom Smith, a competition lawyer at the UK law firm Geradin Partners and the CMA’s former legal director, said the regulator could have gone “harder and faster” on Google but was trying to avoid any accusation that it was anti-growth. The chancellor, Rachel Reeves, has ordered regulators to do more to encourage economic growth. | |
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| Smith said the CMA was proposing a range of sensible measures that would encourage growth and benefit businesses and consumers. | |
| Referring to the second wave of potential measures – such as paying for content from news publishers or helping specialised search engines such as for travel sites – he added: “It is, however, disappointing that some key measures that would benefit the news industry and local search providers have been delayed to next year. The CMA could have gone harder and faster, but it is treading carefully to avoid being labelled as being ‘anti-growth’ by Google and its allies.” | |
| The Google announcement is the CMA’s most significant step on big tech since the appointment of Doug Gurr, the former UK boss of Amazon, as the authority’s chair. The government was forced to deny it was “in the pocket of big tech” in the wake of Gurr’s hire. | |
| Google said the move could have significant implications for businesses and consumers in the UK. | Google said the move could have significant implications for businesses and consumers in the UK. |
| “We’re concerned that the scope of the CMA’s considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided,” said Oliver Bethell, Google’s senior director for competition. | “We’re concerned that the scope of the CMA’s considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided,” said Oliver Bethell, Google’s senior director for competition. |
| Bethell also indicated that Google might delay product releases in the UK as a consequence. | |
| “The UK has historically benefited from early access to our latest innovations, but punitive regulations could change that,” he said. |