UK Puts Google’s AI Ambitions Under Tighter Regulatory Control

Google’s ambitious plans for an AI-powered future are now under tighter regulatory control in the UK, after the national competition watchdog explicitly included the company’s AI features under its new “strategic market status” designation. This move signals that regulators are determined to prevent Google from using its new AI technologies to further entrench its market dominance.
The Competition and Market Authority (CMA) confirmed that its new designation covers not just traditional search but also Google’s “AI overview and AI mode features.” This is a significant development, as it means any new rules the CMA creates will apply to the next generation of search technology, not just the current one.
Regulators are concerned that AI could become another tool for monopolies. For example, AI-generated summaries could reduce the need for users to click through to original websites, giving Google even more control over information and potentially harming the publishers whose content trains the AI models. The CMA’s proposed remedy of giving publishers “more control over how their content is used” directly addresses this fear.
Furthermore, by suggesting that AI rivals like Perplexity and ChatGPT could be included on “choice screens,” the CMA is actively trying to foster competition in the nascent AI search market before it becomes as dominated as traditional search. This is a proactive approach designed to shape the future market rather than just reacting to past problems.
Google has framed this as a threat to its ability to innovate in AI. However, the CMA’s action indicates a belief that without regulatory guardrails, Google’s AI ambitions could lead to a less competitive and less diverse digital world.