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On Tuesday, the U.K.’s competition regulator declared it is considering a new market designation for Google that would require the search giant to provide alternative search options to users. It would also compel the company to rank search results “more fairly” and offer greater control to publishers. This will precede how their content is used in Search and AI Overviews. Significantly, the proposed designation falls under the Google strategic market status label.
Google Strategic Market Status: New Rules Set to Influence Search Market
Furthermore, the new Digital Markets Competition Regime was enacted earlier this year. Therefore, the U.K.’s Competition and Markets Authority (CMA) said it is launching a consultation for this purpose. The aim is to decide whether to designate Google with Google’s strategic market status. In addition, the developer designed this status for companies with a “sufficiently powerful position” in their market. The essence is to enable developments that can impact competition.
Google Strategic Market Status: Key Measures Google Must Adhere To
With this label, Google would be forced to obey various obligations. These include introducing choice screens that pave the way for users to decide and switch between search services. It’s interesting to note that these do include potential AI Assistants. It also requires the enforcement of fair ranking principles for search results. In addition, the measures propose better controls for publishers over how their content is collected for search. Moving forward, these collated data will include Google’s AI services. Essentially, the services also include AI Overviews and the Gemini AI Assistant.
As we proceed, users would also benefit from enhanced data portability. The proposed rules encourage people to transfer their data, including their search history, which they can do more easily. Analysts say this update represents one of the most sweeping attempts to address digital market dominance. It projects a toughened stance from the U.K. government.
CMA Flags Google’s Prominence in U.K. Search Market
In a blog post about the consultation and proposed designation, CMA chief executive Sarah Cardell revealed that U.K. businesses spent more than £33,000 per advertiser on Google search ads last year. That huge figure evidenced the scale of Google’s influence in digital advertising markets. Cardel wrote, “Google search accounts for more than 90% of all general search queries in the U.K.”
She further stated that millions of people rely on it as a primary gateway to the Internet. “If competition were working well, we would expect these costs to be lower,” she said. The Google strategic market status designation aims to correct this imbalance by forcing structural changes that could level the playing field for smaller players.
Notably, these targeted and proportionate actions would give U.K. businesses and consumers more choice and control. These developments will exist in companies engaging with Google’s search services. Cardell also noted that the move could open greater opportunities for innovation across the U.K. tech sector. Additionally, this could also extend to the broader economy. The CMA believes this designation can reduce dependency and boost digital pluralism.
Stakeholders Position for October Decision
As of the time TechPolyp was filing this report, CMA is collecting opinions on this designation. They’re also working on the proposed measures from industry stakeholders. The community expects her to decide on Google’s strategic market status by October 13. Until then, public consultations and lobbying efforts are likely to intensify.
Industry experts believe Google will respond strongly if the proposed measures interfere with its algorithm or advertising structure. Past behaviour suggests Google may challenge the designation or negotiate for softened obligations. Similarly, experts believe the move mirrors broader global efforts to regulate dominant tech platforms.
The European Union’s Digital Markets Act (DMA) had imposed similar rules. In the United States, legislators have floated antitrust bills targeting platform gatekeepers. Consequently, the U.K.’s initiative aligns with this global regulatory momentum.
If the tech company is designated with Google’s strategic market status, Google will join a growing list of tech companies under watch. This will include Apple, Meta, and Amazon. Each of these firms is battling new scrutiny for how they control access to users, information, and advertisers.
TechPolyp notes that some stakeholders in the publishing and advertising space have lauded the proposed status. They contend that it could bring back fairness and visibility to smaller units. Others object that too much intervention may stifle innovation or slow service improvements.
Irrespective of the outcome, the CMA’s action signals that regulators are no longer willing to leave digital dominance unchecked. The next few months could reshape how users in the U.K. interact with Google. And the effects of the Google strategic market status designation may ripple far beyond British borders.