CMA Designates Google with Strategic Status in Search Services
The Competition and Markets Authority (CMA) has officially confirmed that the legal criteria have been satisfied to grant Google a designation regarding its general search and search advertising services.
This designation represents a significant milestone, as it is the inaugural application of new powers by the CMA aimed at curbing the supremacy of technology giants, thereby enabling the authority to implement necessary regulatory measures.
With the advent of new digital market regulations, which recently came into effect, companies designated with such status are subject to conduct mandates that seek to enhance competition among UK enterprises and broaden consumer choice.
Presently, Google commands over 90% of all search queries in the United Kingdom and serves more than 200,000 local businesses looking to connect with their clientele.
In June, the CMA initiated a review to determine whether Google’s control over its search engine should be mitigated to provide publishers with greater authority regarding the utilization of their content.
Potential regulatory modifications may entail compelling Google to offer internet users the opportunity to select alternative search engines.
However, it was clarified on Friday that this designation would not extend to Google’s Gemini AI assistant, though various other AI-driven search functionalities, including AI Mode and AI Overviews, will be encompassed.
The CMA emphasized that designating a firm with this status is “not a finding of wrongdoing and does not introduce any immediate requirements.”
Nevertheless, the authority intends to explore “proportionate, targeted interventions” and plans to initiate consultations on prospective measures later in the year.
Will Hayter, the executive director for digital markets at the CMA, stated: “By fostering competition in digital markets like search and search advertising, we can unlock opportunities for businesses of all sizes, nurturing innovation and growth, and catalyzing investment throughout the UK economy.”
He further remarked on Google’s entrenched position, asserting that “more than 90% of searches in the UK occur on its platform.”
In response, Alphabet-owned Google has issued warnings concerning potential price increases and adverse effects on growth and innovation stemming from possible CMA interventions.
Oliver Bethell, Google’s senior director for competition, articulated that “several proposed interventions may stifle UK innovation and growth, potentially delaying product launches during a critical era of AI-driven advancements.”
He cautioned that some measures could inflict direct harm upon businesses, leading to increased costs for consumers.
Conversely, the consumer advocacy group Which? has welcomed this move as a crucial step towards enhancing competition within digital marketplaces.
Rocio Concha, the director of policy and advocacy at Which?, remarked: “The CMA’s meticulous evidence collection presents a compelling case that Google qualifies for strategic market status concerning Google Search.”
She emphasized the need for prompt action from the CMA to address the detrimental dominance of Google amidst the evolving landscape of online search, particularly with the rising prominence of GenAI tools.
Source link: Watfordobserver.co.uk.
