In a move that could significantly boost Google’s competitors, the UK’s competition regulator has proposed “choice screens” that could feature AI-powered rivals like Perplexity and ChatGPT. This comes after the Competition and Market Authority (CMA) designated Google with “strategic market status,” giving it the power to enforce such changes.
The designation is the first use of powers under the UK’s new digital markets law and is a direct response to Google’s immense market share of over 90% in search. The “strategic market status” (SMS) subjects Google to a special regulatory regime designed to promote competition and consumer choice.
The “choice screen” proposal is one of the most concrete examples of the changes the CMA is considering. The idea is to present users with a clear and simple menu of search engine options, breaking the default advantage that Google currently enjoys. The explicit mention of AI rivals signals the regulator’s focus on future-proofing competition in the search market.
While this could be a boon for emerging competitors, Google has expressed wariness. A senior director at the company warned that many of the proposed interventions could “inhibit UK innovation and growth,” potentially delaying the rollout of new technologies for British users. This contrasts with the CMA’s view that more competition will drive investment and benefit the economy.
The CMA will launch a formal consultation on the choice screen proposal and other potential remedies later this year. The designation of Google is a watershed moment, setting a precedent for how the UK will regulate dominant digital platforms under its new legal framework, which is also being used to assess the mobile platforms of Apple and Google.
Perplexity and ChatGPT Could Appear on UK “Choice Screens” in Google Challenge
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