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What happened
The UK's Competition and Markets Authority (CMA) has officially designated Google Search with Strategic Market Status (SMS), a move that allows for enhanced regulatory oversight. This designation follows a comprehensive 10-month investigation and is the first application of powers under the new Digital Markets, Competition and Consumers Act. The CMA's decision aims to foster competition in the digital market, where Google currently dominates with over 90% of search queries in the UK. Proposed measures include implementing choice screens for users to select rival search engines, establishing fair ranking principles for search results, and enhancing data portability. Additionally, Google may need to seek permission to use publishers' content in its AI Overviews. The CMA's actions are seen as a critical step towards improving competition, although Google has expressed concerns that these regulations could hinder innovation and growth. The CMA's roadmap for regulatory changes may take several months to implement, reflecting a flexible approach compared to the EU's fixed regulations.
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Key insights
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1
CMA's Regulatory Power
The CMA's designation of SMS allows for targeted interventions in digital markets.
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2
Impact on Competition
New measures aim to enhance competition among search engines.
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Google's Response
Google warns that regulations may inhibit innovation and increase costs.
Takeaways
The CMA's decision marks a significant shift in regulating digital market competition in the UK.