Google Seeks Pro-Innovation UK Digital Rules After CMA SMS
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The UK's Competition and Markets Authority (CMA) has officially designated Google Search with Strategic Market Status (SMS) under the new Digital Markets, Competition and Consumers (DMCC) Act. This designation signifies that Google Search holds substantial and entrenched market power, making it subject to enhanced regulatory oversight and potential new rules from the CMA. Google's response acknowledges the evolving regulatory landscape but strongly advocates for a “pro-innovation UK regulatory framework.”
The core implication of this SMS designation is that the CMA can now impose specific conduct requirements on Google, aiming to ensure fair competition, promote innovation, and protect consumers within the digital ecosystem. For Google, this presents both challenges and opportunities. The primary risk is the imposition of overly prescriptive or rigid regulations that could inadvertently stifle technological advancement, limit product development, and potentially disadvantage UK users by restricting access to beneficial features or services. Google's call for a pro-innovation framework underscores its concern that poorly conceived regulation could hinder its ability to compete globally and innovate for its users.
Conversely, Google frames the potential benefit as the chance to collaborate with regulators to craft a framework that understands the complexities of digital markets. A balanced approach, they argue, could foster competition without impeding the innovation that drives the digital economy. This involves ensuring any new rules are proportionate, forward-looking, and adaptable to rapidly changing technology. Google's statement emphasizes its commitment to working with the CMA to develop regulations that support the UK's digital ambitions, maintain a competitive environment, and ultimately benefit consumers through continued innovation. The company aims to avoid a scenario where the regulatory burden outweighs the intended market improvements.
(Source: https://blog.google/around-the-globe/google-europe/united-kingdom/cma-designation-google-search/)
