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Dec 01, 2023Google faces UK crackdown over AI Search, advertising practices
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Google is facing fresh pressure in the UK as the country’s top competition regulator moves closer to imposing stricter oversight of its search and advertising business, including new AI-driven search features.
Driving the news. The UK’s Competition and Markets Authority (CMA) flagged concerns about fairness in search result rankings, high ad costs, and use of third-party content in AI-generated search summaries
Why it matters. The SMS designation is a powerful regulatory label that could allow the CMA to enforce behavioral changes in how Google operates in the UK, particularly in AI search and advertising. This could lead to regulatory changes that affect ad placement, pricing, and visibility.
If the CMA enforces new rules around fair ranking and ad market power, it could reshape how search ads are bought, shown, and valued – especially as AI-generated summaries increasingly bypass traditional links. This could lead to greater market competition, but also introduce new compliance and strategy challenges for marketers.
What they’re saying. Google warned that the CMA’s proposals are “broad and unfocused” and risk stifling innovation.
The big picture. Google is already battling antitrust action on multiple fronts, including a €4.1B EU fine and a U.S. case that could force the sale of its Chrome browser.
What’s next. The CMA plans a second phase of scrutiny in early 2026, potentially expanding into Google’s ad dominance, relationships with publishers, and treatment of search rivals.
Anu Adegbola
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