Issued by: Competition and Markets Authority

Two new conduct requirements introduced today will ensure Google’s search rankings, including AI Overviews, are fair and that users can benefit from sharing their data.

• Requirements are designed to improve trust and confidence in Google’s search services

• Requirements will ensure fair ranking of search results for businesses and provide effective routes to raise concerns

• Existing voluntary data porting tool now underpinned by a legal requirement in UK

The Competition and Markets Authority (CMA) has today introduced 2 new conduct requirements for Google’s general search services under the UK’s digital markets competition regime. The first requires that Google improve transparency and fairness in how search results are ranked. The second requires Google to allow users to port their search data to authorised third parties such as rewards platforms or companies offering personalised offers or discount codes.

The requirements follow the CMA’s actions in early June [https://tinyurl.com/vtpvrckb] which gave publishers effective tools to control whether their content is used to power Google’s AI features. More activity is expected over the summer.

Fair Ranking

UK businesses rely on Google search to reach customers but have told the CMA that current ranking practices are neither fair nor transparent - and that this uncertainty holds them back from investing in and growing their businesses. They also told the CMA that changes are made without sufficient notice, and when these changes impact their businesses, they do not have effective ways to raise concerns.

The Fair Ranking conduct requirement addresses these concerns, giving businesses the trust and confidence they need to succeed, unlocking benefits for the economy and for UK consumers.

Under this conduct requirement, Google must:

• Rank ‘organic’ search results using objective and non-discriminatory criteria (including in AI Overviews but not sponsored results)

• Provide greater transparency to businesses about how rankings work and give advance notice of significant changes

• Introduce clear processes for businesses to raise concerns about how Google ranks results and have them addressed effectively

Search continues to evolve rapidly, including through new AI-based search features - like AI Overviews and AI Mode. The CMA believes UK businesses deserve to have trust and confidence that they will be treated fairly as these changes take place, and that users deserve continued access to relevant and high-quality search results.

Data Portability

The CMA is introducing a separate conduct requirement to support greater choice and innovation for consumers. Third-party firms are keen to offer people new products and services based on their Google search data but need to be able to access it with confidence. Using this data would allow third parties to offer people more personalised features - like tailored travel suggestions, more relevant shopping deals, and rewards (including cashback and discounts).

Today’s action puts the voluntary process already in place through Google’s UK Data Portability Application Programming Interface on a legal footing. The rights of UK users will now be on a par with those in the EU (under the EU’s Digital Markets Act), and innovative businesses will have the certainty they need to invest in new products and services for consumers.

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.

"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.

"These new measures will ensure search results are ranked fairly and objectively, with clearer information about changes and effective routes to raise concerns. At the same time, innovative businesses will have the confidence that they can access search data in practice, unlocking investment and innovation in new products and services for users."

Google has 6 months to implement the fair ranking requirement, and 3 months for the data portability requirement. The CMA will monitor Google’s compliance closely, including through regular reporting and ongoing engagement with businesses and other stakeholders. It will keep the effectiveness of the requirements under review – particularly given the rapidly evolving nature of search – and may introduce further measures if necessary.

Since the digital markets competition regime came into force last year, the CMA has designated Apple and Google with strategic market status (SMS) in relation to their mobile platforms, and Google’s search and search advertising activities. It has recently launched a fourth SMS investigation into Microsoft’s business software ecosystem.

More information can be found on the CMA’s Google Search page: [https://tinyurl.com/3mane7v4]

Notes to editors

1. To designate a firm with SMS, the CMA must decide that it has substantial and entrenched market power and a position of strategic significance in a digital activity. Google having SMS does not imply that it has acted anti-competitively.

2. Once the CMA has designated a firm as having SMS, it is then able (subject to a legal framework that includes further public consultation and showing that measures are proportionate) to introduce interventions (such as those as set out in today’s decision) to unlock competition, increase innovation, and protect consumers.

3. To port their data, a user signs up to a third-party service (such as a rewards platform or personalised recommendation service). Within the third-party service, the user is prompted to connect their Google account and explicitly authorise the transfer of their search data. The third party uses Google’s Data Portability API to request the relevant data. Google processes the request and transfers the data securely to the third party. The data is then used to deliver a service, such as personalised recommendations or tailored offers or discounts. More information about how this works is available on Google’s website: [https://tinyurl.com/3r8ze9mu]

For media enquiries, contact the CMA press office.

Email

press@cma.gov.uk

Telephone numbers

Phone: 020 3738 6460

Out of hours: 020 3738 6878

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