Google labeled UK tech gatekeeper under new competition law
The regulator labeled Google as a company it needs to keep a close eye on due to its ubiquitous search engine and lucrative search-advertising business.
The U.K.’s competition enforcer labeled Alphabet’s Google as a company it needs to keep a close eye on due to its ubiquitous search engine and lucrative search-advertising business.
It is the first time the Competition and Markets Authority has completed a probe into whether to class a tech giant as a company with so-called strategic market status under the new Digital Markets, Competition and Consumer Act. The law aims to curb Big Tech’s market dominance and benefit businesses that rely on their search engines and app stores to make money.
Under it, companies like Google will have to follow a bespoke set of rules that apply to their popular platforms. The CMA started investigating Google under its new rulebook in January. The regulator can fine companies up to 10% of their annual worldwide turnover for flouting the legislation.
The CMA said on Friday that Google has substantial and entrenched market power in general search and search advertising. It said that Google’s Gemini AI chat assistant won’t be under the scope of the ruling, but Google’s other AI-based search features such as AI Overviews and AI Mode are.
The regulator now has to work on a set of interventions for Google’s search business.
“Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation," Google’s Senior Director for Competition Oliver Bethell said.
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