Google Faces Stricter Regulations In UK Over Search Engine Domination

Google holds a strategic position in the search sector (photo; dock. pexels)

JAKARTA Google could be forced to change the workings of its search services in the UK after becoming the first company to be set under the new authority of UK competition regulators aimed at limiting the dominance of major tech companies.

Regulators have long highlighted Google, which Alphabet has and an important decision on Friday 11 October that stipulates Google has a status strategic market' in the field of online search giving CMA greater power to act.

"We found that Google holds a strategic position in the search and advertising sector for with more than 90% of UK searches being carried out through their platform," said Will Hayter, CMA Executive Director for Digital Markets, quoted by VOI from Reuters.

Possible Intervention

This CMA move allows regulators to ensure Google search services remain open to effective competition.

This determination does not mean that Google has committed a violation, and does not immediately trigger change, but CMA can now impose fines for non-compliance and has direct enforcement power.

In June, CMA outlined possible applicable changes, such as:

- fairer search results ranking,

- ease of access for consumers to alternative search engines, and

- greater control for publishers of the way their content is used in AI-based responses.

The CMA is expected to conduct public consultations on the planned intervention later this year.

Many intervention ideas that arise in this process can actually hinder innovation and growth in the UK, even slowing down the launch of new products amid major AI advances, said Oliver Bethel, Senior Director of Competition at Google.

Google last month also announced an investment of 5 billion US dollars (6.65 billion US dollars or around Rp108.6 trillion) in the UK.

New Round Against Google

This decision is CMA's first step in using its new powers to regulate the tech giant. The second CMA investigation into the mobile operating system can also allow Google to accept similar determinations, particularly those related to Android.

In the United States, the Federal Trade Commission (FTC) last month launched an investigation into Google and Amazon regarding search ads, while the US Department of Justice (DoJ) is trying to force Google to sell part of its advertising technology tools.

Meanwhile, the European Union recently imposed a fine of USD 3.45 billion (approximately IDR 56.3 trillion) on Google for its anti-competitive practices in its advertising business.

However, the now more pro-growth political background in the UK makes intervention likely less likely, according to legal experts.

After the CMA acquires its new powers, the government asks regulators to focus on economic growth and reduce uncertainty for businesses. The government also appointed Amazon's former executive, Doug Gurr, as CMA's interim chairman in January.

Tom Smith, competition lawyer at Geradin Partners and former director of CMA, said there was strong reason to remove market distortions caused by Google's monopoly position.

This includes giving website managers greater control over how their content is used for AI training, which is considered to reduce Google's unfair advantage over other AI companies.

CMA added that Google Gemini's AI assistants were not included in the scope of the designation, but other AI-based search features, such as AI Overviews and AI Mode, were already under surveillance.