Google faces making changes to search services under watchdog proposals

Google must make sure publishers get a “fairer deal” in how their content is used in the tech giant’s AI Overviews and make it easier for people to switch search services under proposals outlined by Britain’s competition watchdog.

The Competition and Markets Authority (CMA) has tabled a series of proposed measures to improve Google’s search services in the UK after it designated the firm with so-called strategic market status in October for its “substantial and entrenched market power” in the sector.

The conduct requirements include giving publishers – including news and other content creators – more choice and transparency over how their content is used in Google’s artificial intelligence-based search feature, AI Overviews.

Google will also be required to demonstrate to the CMA and users that it ranks search results fairly, including in AI Overviews and AI Mode, as part of the plans.

The CMA is proposing making it a legal requirement that people are given a default choice screen on Android mobiles and the Chrome browser to make it easier to switch search services.

The regulator also wants Google to allow for data portability to make it easier for people and businesses to make use of search findings.

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 now consult on the measures, with a deadline for feedback of February 25.

The move marks the first time the CMA has used new powers to set conduct requirements after designating strategic market status as it looks to tackle the dominance of tech giants.

Under new digital market rules which recently came into force, firms designated with the status can have measures imposed on them which boost competition for UK businesses and choice for consumers.

Ron Eden, Google’s principal for product management, said: “Our goal is to protect the helpfulness of Search for people who want information quickly, while also giving websites the right tools to manage their content.

“We look forward to engaging in the CMA’s process and will continue discussions with website owners and other stakeholders on this topic.”

But he cautioned “any new controls need to avoid breaking Search in a way that leads to a fragmented or confusing experience for people”.

“As AI increasingly becomes a core part of how people find information, any new controls also need to be simple and scalable for website owners.”

The CMA plans would allow publishers to opt out of their content being used to power AI features, such as AI Overviews, or to train AI models outside of Google Search.

Google would also be required to take steps to ensure publisher content is properly attributed in AI results.

The News Media Association (NMA) said the measures were a “critical step” in bringing fair competition to the digital economy.

Owen Meredith, chief executive of the NMA, said: “The CMA rightly recognises that Google is able to extract valuable data without reward, harming publishers and giving the company an unfair advantage over competitors in the AI model market, including British start-ups.

“Opening up model development to competition is vital to attracting inward investment to the UK, while licensing our high-quality journalistic content could unlock significant economic growth.

“However, given the seriousness of Google’s anti-competitive impact on news media and the AI market, we are sceptical that weaker behavioural remedies will be sufficient.”

Google accounts for more than 90% of searches in the UK, while it is also used by more than 200,000 UK businesses to reach customers, with firms spending over £10 billion last year on search advertising.

Rocio Concha, director of policy and advocacy at consumer group Which?, said: “Google holds a vice-like grip over the search engine market, which shuts out other businesses and reduces choice and pushes up costs for consumers.

“These proposed requirements are needed to make sure businesses and consumers get a fair deal from Google.

“Wider availability of better choice screens are a necessary first step to opening up the market for other search tools.”

But both Which? and the NMA urged the CMA to put in place measures swiftly and called on the Government to support the watchdog to take action.