“Profound AI Innovation” at Risk, Google Warns After UK Regulatory Move

Google has warned that the UK’s access to “profound AI-based innovation” could be put at risk, following a decision by the nation’s competition watchdog to place its search business under tighter regulation. The Competition and Market Authority (CMA) has designated Google with “strategic market status,” a move that gives it the power to enforce changes to the company’s operations.
The new status is a direct result of the Digital Markets, Competition and Consumers Act 2024 and targets Google’s immense power, with the company handling over 90% of UK searches. The CMA’s goal is to introduce a special regulatory regime to promote competition in a market dominated by a single player.
The regulator is considering several interventions, including forcing Google to offer “choice screens” so users can easily select competing search engines, such as AI-native platforms like Perplexity and ChatGPT. The CMA also plans to examine rules for fair ranking and to give publishers more control over content used in Google’s AI-powered search features.
In response, Oliver Bethell, Google’s senior director for competition, argued that many of the proposed ideas “would inhibit UK innovation and growth.” He suggested that the new regulatory burden could slow the rollout of new products at a critical time for AI development, potentially disadvantaging UK consumers.
Despite Google’s concerns, the CMA is moving forward, with plans to launch a consultation on specific conduct requirements this year. The regulator stated the decision was not a finding of wrongdoing but a necessary step to address Google’s strategic position. This landmark case sets a precedent for how the UK will handle dominant tech firms, with Apple’s and Google’s mobile platforms also under review.