That would require Google to implement sweeping changes in how its search engine operates for the entire United Kingdom. This follows a landmark decision by the UK competition regulator that aims to ensure better consumer choice for alternative search engine providers. This decision comes on the heels of a €2.95 billion (£2.5 billion) fine from the European Union in September. The previous fine stemmed from claims of misuse of monopolistic power in the ad tech industry.
The ad tech industry controls how advertisements are served and shown on the entire web. That’s why Google has been under such an extreme amount of scrutiny here. As pressure on all its monopolistic practices grows, the Competition and Markets Authority (CMA) is floating bold steps. Such moves would make Google reconsider its anti-competitive business practices.
Oliver Bethell, Google’s new(ish) competition chief, defended the changes in a blog post. He continued, putting particular stress on the importance of innovation for the UK market. He observed that British businesses and consumers have often been able to use Google’s innovations well before their European peers.
“UK businesses and consumers have been amongst the first to benefit from Google’s innovations, often months before their European counterparts,” – Oliver Bethell
Bethell went out of her way to note the enormous positive contribution that Google has made to the UK economy. In 2023, Google Search brought in an impressive £118 billion. He warned that there are some proposed interventions that would stifle innovation and growth.
“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,” – Oliver Bethell
Rocio Concha, Google’s new policy chief, said at the time on the CMA’s announcement of the deal, calling it a huge breakthrough. She understood the direction and future of online search, particularly with the rise of generative AI tools. In particular, she stressed the need for swift regulatory action to challenge Google’s monopoly behavior.
“The CMA’s careful evidence gathering makes a compelling argument,” – Rocio Concha
Concha warned that it was crucial to provide consumers with a variety of search choices. Much work lies ahead, this push signals an exciting broader tide toward greater competition in technology markets.