UK competition regulator looks into Google’s AI search

The Competition and Markets Authority (CMA) has proposed what it describes as a “package of measures” to improve how Google delivers search services in the UK.

Last October, the CMA classified Google search and search advertising with strategic market status (SMS). This designation enables it to consider proportionate, targeted interventions to ensure that general search services are open to effective competition, and that consumers and businesses relying on Google can have confidence that they are treated fairly.

Following on from the SMS designation, the regulator is now looking at how it can ensure the 200,000 UK businesses that spend £10bn a year on Google advertising are treated fairly.

The CMA sees internet search as central to the economy and everyday life. Search engines are increasingly providing AI-generated responses, a development of the search engine giant’s capabilities that the regulator is now focused on. 

In a blog post discussing the proposal, Will Hayter, executive director for digital markets at the CMA, said: “Our goal is to support innovation and growth, ensure people benefit from a high-quality digital experience, deliver fairer outcomes for content publishers and help businesses and consumers make active, informed choices.

Looking at Google’s AI Overview functionality, the CMA has proposed that Google gives publishers a meaningful choice over how their content is used in AI-generated responses within and outside internet searches. The CMA also wants Google to be more transparent about how publisher content feeds into AI-generated responses in search, and how people use these features. In addition, it is calling for proper attribution of publisher content in AI results, along with a clear explanation of how this works.

With regards to the way the Google search engine lists websites in its search results, the CMA has proposed that Google ranks organic results fairly, which, in effect, means it should not favour websites that advertise on Google or have entered other commercial arrangements with Google. The CMA also wants Google to provide more information on how it ranks results, including in AI Overviews and AI Mode. In addition, the CMA is proposing that Google strengthens the complaints processes for ranking issues.

Sarah Cardell, chief executive of the CMA, said: “Today is an important milestone as we consult on the first conduct requirements under the digital markets competition regime in the UK.

“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. They would also provide a fairer deal for content publishers, particularly news organisations, over how their content is used in Google’s AI Overviews.”

The CMA will be closely following the US Department of Justice’s attempt to curb what has been ruled as anti-competitive practices by Google in the search engine market.

In August 2024, the US District Court for the District of Columbia released a 277-page opinion, concluding that “Google is a monopolist, and it has acted as one to maintain its monopoly” in violation of Section 2 of the Sherman Act. In September, the Justice Department said it would continue to review the opinion to consider its options and next steps regarding seeking relief.