New Ruling Could Change How Google Operates in the UK

The UK's Competition Markets Authority has designated Google as having Strategic Market Status, meaning the company has substantial and entrenched market power. According to a new regulation filed on Friday, suggestions to fix this designation could change how the online search giant operates within the country. 

Since Google has a dominant position in online search in the UK, with over 90% market share, the CMA is suggesting that Google give users "choice screens" in Chrome to allow people to opt for competing search engines. It also highlights concerns from publishers regarding ranking and the use of content for AI-generated summaries. At the moment, changes don't have to be made to Google's use of AI Overviews, but a future designation could be made. 

The designation comes as regulators around the world try to rein in Big Tech's power. Google also faces scrutiny in the US over its market share. The company was declared to be operating an illegal monopoly earlier this year. A federal judge stopped short of ordering the firm broken up over its search business. In another case, a different judge determined the company was operating a monopoly in its advertising business. Some remedies include Google sharing valuable search data with competitors. 

The EU Digital Markets Act targeted Google and Apple to allow for more fair competition on app stores, which both companies protested. The US Federal Trade Commission targeted Microsoft in 2022 to try to block the purchase of Activision Blizzard, although the effort failed. At the time, Microsoft argued that the price of its Game Pass Netflix-style subscription service wouldn't increase. Prices went up earlier this month. The FTC was able to block Nvidia's acquisition of Arm, a competing chip design company. 

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Companies like Apple, Google and Microsoft have reached monstrous valuations in recent years, each breaking the $3 trillion mark. Nvidia actually leads the pack at a $4.3 trillion valuation. Nvidia is bigger than the entire market equities of Italy, Germany, France, UK and Canada. 

When asked for comment, both Google and the CMA linked to their respective blog posts. 

"By promoting competition in digital markets like search and search advertising, we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy," said Will Hayter, executive director for digital markets at the CMA, in a blog post. The blog post also notes that Google hasn't been found guilty of wrongdoing, but this designation enables the CMA to take steps to ensure fair competition. 

"The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as Search," said Oliver Bethell, senior director of competition at Google, in a blog post. "Retaining this position means avoiding unduly onerous regulations and learning from the negative results seen in other jurisdictions, which have cost businesses an estimated €114 billion."