Google Urges Pro-Innovation UK Digital Market Rules
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The UK's Competition and Markets Authority (CMA) has designated Google Search with Strategic Market Status (SMS) under the new Digital Markets, Competition and Consumers (DMCC) Bill. This designation signifies that Google Search is considered to possess substantial and entrenched market power, holding a strategic position in the digital economy. Google, in response, advocates for a “pro-innovation” UK regulatory framework.
From Google's perspective, the primary benefit of such a framework would be fostering a dynamic environment that supports UK tech growth, enhances competition, and expands consumer choice. They emphasize the importance of regulations being proportionate, predictable, and evidence-based, tailored to specific market issues rather than adopting a broad, one-size-fits-all approach. Google believes that thoughtful regulation can position the UK as a global leader in digital market governance.
Conversely, Google warns of significant risks associated with overly restrictive or prescriptive regulations. Such an approach could inadvertently stifle innovation, particularly for smaller businesses that rely on platforms like Google to reach customers. They express concern that rigid rules might limit consumer choice by making it harder for new services to emerge or existing ones to evolve, potentially leading to unintended consequences that harm the broader digital ecosystem rather than improve it. The company urges regulators to avoid measures that could hinder the development of new products and services, emphasizing that the goal should be to encourage, not constrain, digital progress.
(Source: https://blog.google/around-the-globe/google-europe/united-kingdom/cma-designation-google-search/)
