Google may become first Big Tech company to bring business model changes in Europe

The UK’s competition watchdog has reportedly proposed significant measures to loosen Google's grip on its

search engine

, marking the first application of the country's stringent new

digital market rules

. The

Competition and Markets Authority

(

CMA

) announced its intention to impose “fair ranking” requirements on Google's search results and grant publishers greater control over their content, including its use in artificial intelligence-generated outputs.

CMA says probe suggests ways to make markets open

The CMA stated it is “minded to hand Google 'strategic market status' (SMS),” a designation introduced under new digital market legislation this year. This label, reserved for companies with an outsized influence in specific digital markets, would compel the tech giant to adhere to a series of new conduct rules. A final decision is expected by October, following a public consultation period.“Google is the world’s leading search tool and plays an important role in all our lives, with the average person in the UK making five to 10 searches a day," said Sarah Cardell, the CMA’s chief executive. "Our investigation so far suggests there are ways to make these markets more open, competitive and innovative,” she added.

Among other potential conduct rules, the CMA is considering requirements for Google's search result rankings and for its distribution partners, such as Apple, to offer “choice screens.” These screens would facilitate easier switching between search providers for consumers. Google is the first firm to be targeted under these robust new UK laws. The CMA's investigation, launched in January, aimed to assess whether Google's dominant position in search and search advertising was “delivering good outcomes” for consumers and businesses across the UK.

Google says proposals “broad and unfocused”

In response, Google criticised the proposals as "broad and unfocused," warning they could jeopardise the UK's access to its latest products and services. Oliver Bethell, Google’s senior director for competition, cautioned that “punitive regulations” might alter the pace at which Google launches new offerings in the UK.“Proportionate, evidence-based regulation will be essential to preventing the CMA’s road map from becoming a roadblock to growth in the UK,” Bethell added.Bethell's warning regarding the potential economic impact of these regulations aligns with the

UK government

's mandate for the CMA to prioritise supporting growth and investment while minimising business uncertainty.