The UK's Competition and Markets Authority (CMA) has introduced two new conduct requirements for Google's search services, compelling the tech giant to enhance transparency in search rankings and enable data portability. These measures, part of the country's digital markets competition regime, aim to address concerns over Google's market dominance and ensure fair treatment for businesses and consumers.
Fair Ranking Requirement
Under the new Fair Ranking conduct requirement, Google must rank organic search results using objective and non-discriminatory criteria. This applies to all organic results, including those displayed in AI Overviews, but excludes sponsored listings. The CMA mandates that Google provide businesses with greater clarity on how ranking systems operate and give advance notice of significant changes that could impact search visibility. Additionally, Google must establish clear processes for businesses to raise concerns and seek resolution regarding ranking decisions.
Businesses have long complained about the lack of transparency and predictability in Google's ranking practices, which they say hinders investment and growth. The CMA noted that changes to ranking systems are often introduced without sufficient notice, leaving businesses unable to adapt. These new rules are designed to give businesses more confidence as search services evolve, particularly with the integration of AI-powered features like AI Overviews and AI Mode.
Data Portability Measures
The CMA also introduced a data portability requirement, placing Google's existing UK Data Portability Application Programming Interface process on a formal legal footing. This allows UK users to transfer their search data to authorized third parties, enabling companies to develop personalized services such as tailored travel recommendations, shopping offers, rewards programs, and cashback opportunities. The regulator emphasized that this provides UK users with rights comparable to those under the EU's Digital Markets Act, while giving businesses greater certainty when investing in new consumer-focused products.
Will Hayter, Executive Director for Digital Markets at the CMA, stated, "Step by step, we’re ensuring that Google’s search services work better for businesses and consumers across the UK." He added that clearer and more predictable ranking systems could help businesses expand and invest.
Compliance Deadlines and Oversight
Google has six months to implement the fair ranking requirement and three months to comply with the data portability rule. The CMA will monitor compliance through regular reporting and engagement with stakeholders. The regulator warned that additional measures could be introduced as search technology evolves rapidly. This action follows the CMA's designation of Google and Apple as having Strategic Market Status in mobile platforms, and Google for search and search advertising. Recently, the CMA also launched an investigation into Microsoft's business software ecosystem.
In response, a Google spokesperson reiterated the company's commitment to protecting system integrity and working with the CMA, stating that its ranking systems are "fair, transparent, and show the most relevant, highest quality results." Google had previously indicated in March that it was developing new search controls to address UK regulatory concerns.
These developments are part of a broader trend of increased regulatory scrutiny on Big Tech. For context, the UK CMA Proposes App Store Payment Reforms Targeting Apple and Google Dominance highlights similar efforts to curb market power. Meanwhile, the ECB Orders Eurozone Banks to Submit AI Cyber Defense Plans by October 31 shows how regulators are addressing AI-related risks across sectors.
This article is for informational purposes only and does not constitute financial advice.
