Photo by AS Photography
The UK’s competition watchdog has said Google may need to overhaul parts of its operations to give consumers more choice in online search services. The Competition and Markets Authority (CMA) is examining the US tech giant under a new regulatory regime that grants it the power to impose changes on companies found to wield excessive control over specific markets.
With more than 90% of all online searches in the UK conducted through Google, and around 200,000 businesses relying on its search advertising to connect with customers, the CMA is focusing on the company’s dominant position. Alphabet, Google’s parent company, has responded by describing the CMA’s proposals as “broad and unfocused,” though it has pledged to “work constructively” with the regulator.
At this stage, the CMA is not formally accusing Google of anti-competitive behavior. Instead, it has laid out a preliminary “roadmap” of potential reforms the company might undertake before a final decision is reached in October. Among the suggestions are implementing “choice screens” that would allow users to select different search providers, along with increased transparency and enhanced control for content publishers whose material appears in search results.
According to the CMA, the average UK user performs five to ten searches daily, while businesses spend an average of £33,000 annually on Google advertising. The authority believes that with better competition, these costs could decrease.
“Google Search has brought substantial benefits,” said CMA chief executive Sarah Cardell, “but our investigation so far suggests there are ways to make these markets more open, competitive and innovative.” She added that the proposed changes are “targeted and proportionate,” aimed at providing both consumers and businesses with more choice and autonomy in how they engage with Google’s services.
However, Google warned that the CMA’s suggestions “could have significant implications for businesses and consumers in the UK.” A company spokesperson emphasized that while the “strategic market status” designation does not amount to a claim of wrongdoing, the associated measures could challenge its UK operations. They also cautioned that the UK’s “early access” to Google’s latest technologies could be at risk if “punitive regulations” are adopted.
The CMA launched its investigation into Google in January, aiming to secure fairer competition in the online search space. Since then, 47 organizations—including airlines, online retailers, and media publishers—have shared their experiences regarding the impact of Google’s search practices.
Airline EasyJet reported that EU-mandated search engine changes under the bloc’s Digital Markets Act diverted more users to third-party travel sites that often misrepresented its services and pricing. Google, in turn, argued that while boosting the visibility of rival platforms was required under EU law, it had negatively affected airlines and hotel operators by reducing direct web traffic.
Retailers like LoveHoney and Ann Summers, which sell products ranging from lingerie to sexual wellness items, said Google’s SafeSearch feature had hampered the visibility of their websites by censoring explicit content in search results.
UK Hospitality, a trade association, urged the government to avoid replicating the EU’s rules, warning that they could create “unintended consequences” for both businesses and consumers in the UK.
The CMA’s intervention could also have broader implications for the future of artificial intelligence-powered search. Sebastian Cuttill from the News Media Association noted the relevance of the regulator’s efforts for AI-based services like Google’s AI Overviews. Enhancing transparency in how such systems use news content could be “massive” for publishers, he told the BBC.
News organizations, including the BBC itself, have raised concerns over the use of their content in developing AI tools without proper consent or compensation. Mr. Cuttill said increased transparency would help meet statutory goals of fairness and trust.
Globally, Google’s search operations have come under growing scrutiny. In the United States, a judge ruled last August that the company had illegally maintained a monopoly in search. Meanwhile, the European Union has taken multiple enforcement actions against the tech firm, including a €2.4 billion (£2 billion) fine over the self-preferencing of its Shopping service—an outcome upheld by the EU’s top court last year.
