CMA introduces new conduct requirements for Google search services
AI Sentiment: 35/100 Bearish
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Data portability makes it easier for third parties to build products using UK Google search data (personalized offers, travel, shopping, rewards). Buy UK-listed aggregators/commerce enablers likely to benefit from new data-driven services—e.g., Experian (EXPN) for identity/data infrastructure and targeting, and/or Rightmove (RMV) as a beneficiary of more personalized lead-gen if search-data products emerge. Buy EXPN.
Key Risk: Portability access is delayed, limited in practice, or too costly/uncertain for third parties to monetize quickly.
CMA forces “Fair Ranking” (objective, non-discriminatory criteria + advance notice + complaint process) and formal data portability. That raises compliance cost and limits Google’s ability to tweak ranking/AI features quickly, which can pressure UK monetization and increase regulatory friction across search and search ads. Sell GOOGL.
Key Risk: Google successfully argues the rules don’t materially constrain ranking/AI changes and keeps ad/search growth intact despite compliance.
- CMA orders Google to make search rankings more transparent.
- UK regulator mandates fair ranking and search data portability.
- Google given deadlines to implement new UK search rules.
The UK's competition regulator has introduced two new conduct requirements for Google's search services, aiming to improve transparency, fairness, and consumer choice under the country's digital markets competition regime.
The Competition and Markets Authority announced that Google will be required to provide greater transparency around how search results are ranked and enable users to transfer their search data to authorised third parties.
The measures form part of the regulator's broader efforts to address concerns surrounding Google's position in the search market and to ensure that businesses and consumers benefit from fairer digital services.
New rules focus on search ranking transparency
According to the CMA, businesses across the UK rely heavily on Google Search to reach customers.
However, many businesses have told the regulator that Google's current ranking practices lack transparency and predictability, making it difficult for them to plan investments and grow their operations.
The regulator said businesses reported that changes to Google's ranking systems are often introduced without sufficient notice.
They also expressed concerns about the lack of effective mechanisms to challenge decisions or raise complaints when changes negatively affect their visibility in search results.
To address these concerns, the CMA has introduced a Fair Ranking conduct requirement.
Under the new rules, Google must rank organic search results using objective and non-discriminatory criteria.
The requirement applies to organic search results, including those displayed in AI Overviews, but excludes sponsored results.
In addition, Google will be required to provide businesses with greater transparency regarding how ranking systems operate and give advance notice of significant changes that could affect search visibility.
The company must also establish clear and effective processes through which businesses can raise concerns about rankings and seek resolution.
The CMA said these measures are intended to provide businesses with greater confidence as search services continue to evolve, particularly with the introduction of AI-powered search features such as AI Overviews and AI Mode.
Data portability measures introduced
Alongside the fair ranking requirement, the CMA has introduced a separate conduct requirement focused on data portability.
The regulator said third-party companies are interested in developing products and services based on users' Google search data, but require reliable access to that information.
Access to search data could enable companies to offer more personalised services, including tailored travel recommendations, shopping offers, rewards programmes, cashback opportunities, and discounts.
The CMA said the new requirement places Google's existing UK Data Portability Application Programming Interface process on a formal legal footing.
As a result, UK users will receive rights comparable to those available in the European Union under the EU's Digital Markets Act, while businesses will gain greater certainty when investing in new consumer-focused products and services.
CMA signals continued oversight
Will Hayter, Executive Director for Digital Markets at the CMA, said, "Step by step, we’re ensuring that Google’s search services work better for businesses and consumers across the UK."
He added, "Search is a vital gateway for businesses in the UK to reach customers, and clearer, predictable and more transparent ranking systems could give them greater scope to expand and invest."
The CMA noted that the latest measures build upon actions announced earlier this month that provide publishers with tools to control whether their content is used to power Google's AI features.
The regulator indicated that additional activity related to digital markets regulation is expected during the summer.
Google responds
A Google spokesperson said the company remained committed to protecting the integrity of its systems and would continue working with the CMA.
The spokesperson stated that Google's ranking systems are "fair, transparent, and show the most relevant, highest quality results".
The company had previously said in March that it was developing new search controls to address concerns raised by British competition authorities.
Compliance deadlines and potential further action
The CMA has given Google six months to implement the fair ranking requirement and three months to comply with the data portability requirement.
The regulator said it will closely monitor Google's compliance through regular reporting and engagement with businesses and other stakeholders.
It also warned that additional measures could be introduced if necessary, particularly as search technology continues to evolve rapidly.
Since the UK's digital markets competition regime came into force last year, the CMA has designated both Apple and Google as having Strategic Market Status in relation to their mobile platforms.
Google has also received the designation for its search and search advertising activities.
Recently, the regulator launched a fourth SMS investigation focusing on Microsoft's business software ecosystem.
The CMA noted that Google's search services account for more than 90% of search queries in the UK, reinforcing the importance of ensuring transparency, competition, and fairness within the market.
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