The Competitions and Markets Authority (CMA) has introduced two new conduct requirements for Google’s general search services under the digital markets rules in the Digital Markets, Competition and Consumers Act 2024. The requirements are that Google improve its transparency and fairness in how search results are ranked, and that Google allows its users to port their search data to authorised third parties such as rewards platforms or companies offering personalised offers and discount codes.
UK businesses which use Google search to reach customers have told the CMA that Google’s current ranking practices are unfair and opaque and that this holds them back from investing and growing their businesses. Companies have also told the CMA that Google makes changes without sufficient notice and that when these affect their businesses, they are unable to communicate concerns effectively.
The CMA’s Fair Ranking conduct requirement sets out three key pillars. Under the requirement Google must rank ‘organic’ search results using objective and non-discriminatory criteria, provide greater transparency to businesses and give advanced notice of significant changes, and introduce clear processes for business to raise concerns about how Google ranks its results and that these are addressed effectively.
The CMA will also introduce a separate conduct requirement designed to support greater choice and innovation for consumers. Third-party companies are keen to offer people new products and services based on their Google search data. Using this data allows third parties to offer people more personalised features like tailored travel suggestions, relevant shopping deals, etc. The action taken by the CMA puts the voluntary process under Google’s UK Data Portability Application Programming Interface on a legal footing. This will put the rights of UK users on a par with those in the EU under the Digital Markets Act, and businesses will have the certainty they require to invest in new products and services.
Google has been given six months to implement the fair ranking requirement and three months for the data portability requirement. The CMA will monitor Google’s compliance and will keep the effectiveness of the requirements under review, and may introduce new measures if necessary.
Following the introduction of the digital markets competition regime last year, the CMA has designated Apple and Google with strategic market status (SMS) in relation to their mobile platforms and for Google’s search and search advertising services. The CMA has also recently launched an SMS investigation into Microsoft’s business software ecosystem.
