UK Regulators to Mandate Google Changes Under New Competition Law, Targeting Search and Ads While Exempting Gemini for Now

UK competition regulators are preparing to enforce significant changes on Google under the country’s new digital markets regime, targeting the company’s dominance in search and search advertising. The Competition and Markets Authority (CMA) has confirmed it will begin regulating Google under the Digital Markets Act (DMA), a new law designed to curb the power of large tech platforms and promote fair competition. The CMA’s focus will center on Google’s search engine and its associated advertising services, which have long been scrutinized for favoring the company’s own products and services in search results. This includes practices that may limit consumer choice and hinder the ability of smaller rivals to compete effectively. Notably, the CMA’s initial regulatory actions will not extend to Google’s AI-powered product Gemini, at least for now. The regulator has indicated that while Gemini is a key part of Google’s evolving ecosystem, it is not currently subject to the same level of scrutiny under the new framework. However, regulators have signaled they will monitor the product closely as it develops and assess whether it poses new competitive risks. The move marks a pivotal moment in the UK’s efforts to enforce digital competition rules. The DMA empowers the CMA to impose binding obligations on “gatekeeper” firms like Google, requiring them to ensure fair access to their platforms and prevent anti-competitive behavior. Google has previously faced scrutiny from the CMA, including a 2023 finding that it abused its dominant position in online search. The company has since made some changes to its practices, but regulators say more is needed to level the playing field. The CMA plans to issue formal obligations to Google in the coming months, which could include requirements to alter how search results are ranked, allow third-party services greater visibility, and improve transparency around advertising data. Failure to comply could result in substantial fines. The development underscores the UK’s commitment to reshaping the digital landscape and ensuring that tech giants do not stifle innovation or consumer choice. As AI tools like Gemini become increasingly central to online experiences, regulators are watching closely to ensure that competition remains fair and open.