"Google faces enforced changes to its UK search business after the competition watchdog conferred a special status on the company that puts it under tighter regulation. The Competition and Market Authority (CMA) confirmed that Google has strategic market status (SMS) in search and search advertising, a term that means the company has such market power that it requires a special regulatory regime. The watchdog now has the power under new digital laws to order changes to how Google operates in those areas."
"It has already flagged a number of potential changes including giving internet users an option to choose a different search service via choice screens. One option for the screens would be to include AI-powered rivals in the search space, such as Perplexity and ChatGPT. The CMA has also proposed ensuring fair ranking of search results and providing more control for publishers over how their content is used, including in AI-generated responses."
"Will Hayter, the executive director for digital markets at the CMA, said promoting competition in areas such as search and search advertising where advertisers pay to place an advert in a user's search result can unlock opportunities for businesses and drive investment across the UK economy. We have found that Google maintains a strategic position in the search and search advertising sector, with more than 90% of searches in the UK taking place on its platform, he said."
The Competition and Markets Authority designated Google with strategic market status in search and search advertising, placing the company under a special regulatory regime. The CMA can use new digital laws to order changes to Google’s search business, potentially introducing choice screens that would allow users to select alternative services, including AI-powered rivals like Perplexity and ChatGPT. The CMA also proposed measures to ensure fair ranking of search results and to give publishers more control over how content is used, including in AI-generated responses. The designation is not a finding of wrongdoing and will trigger a consultation on potential changes this year.
Read at www.theguardian.com
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