Britain鈥檚 competition watchdog on Friday paved the way for tougher regulation to tackle Google鈥檚 dominance in online search, under new targeted measures focused on technology giants.
The Competition and Markets Authority said it has designated Google with 鈥榮trategic market status鈥� (SMS), subjecting it to special requirements, in a final decision following a nine-month investigation.
鈥榃e have found that Google maintains a strategic position in the search and search advertising sector,鈥� Will Hayter, executive director for digital markets at the CMA, said in a statement.
A similar tech competition law from the European Union, the Digital Markets Act (DMA), carries the potential for hefty financial penalties.
The CMA plans to launch a consultation this year to determine the rules to impose on the US tech giant. Google warned the UK against 鈥榰nduly onerous regulations鈥� and urged it to learn from 鈥榥egative results seen in other jurisdictions鈥�, referencing the EU鈥檚 DMA.
鈥楳any of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth,鈥� said Oliver Bethell, Google鈥檚 senior director for competition.
Google added Friday that unfavourable regulation could slow the launch of new product launches in the UK.
The company last month announced a 拢5-billion ($6.6-billion) investment in the UK over the next two years to help power the UK鈥檚 AI drive.
鈥楾he UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services,鈥� Bethell said.
The regulator noted that Google鈥檚 Gemini AI assistant was not included in the designation but would be kept under review.聽