UK orders Google to make search rankings fairer within 6 months

The UK's Competition and Markets Authority ordered Google to overhaul its search ranking practices within six months, requiring the company to use objective, non-discriminatory criteria and give businesses advance notice of changes that affect their visibility.

"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," Will Hayter, executive director for digital markets at the CMA, said.

The regulator introduced two conduct requirements under the UK's digital markets competition regime. The fair ranking mandate applies to organic search results, including those displayed in AI Overviews, while excluding sponsored listings. A separate data portability requirement places Google's existing UK Data Portability API on formal legal footing, giving UK users rights comparable to those under the EU's Digital Markets Act and enabling third parties to build products using Google search data. Google must comply with the data portability rule within three months.

The rules target Google's dominance in a market where the company controls more than 90% of UK search queries. Alphabet's Google was designated as having Strategic Market Status for search and search advertising under the Digital Markets, Competition and Consumers Act, which took effect last year. The CMA has also designated Apple and Google for their mobile platforms and recently launched a fourth SMS investigation targeting Microsoft's business software ecosystem.

The fair ranking requirement addresses complaints from businesses that Google's ranking practices lack transparency and predictability, making it difficult to plan investments. Many reported that changes to ranking systems are introduced without sufficient notice and that no effective mechanism exists to challenge decisions when changes hurt their visibility. Under the new rules, Google must establish clear processes for businesses to raise concerns and seek resolution.

The data portability measure could unlock new consumer services. Third-party companies have expressed interest in developing personalized travel recommendations, shopping offers, rewards programs and cashback opportunities based on users' Google search data but require reliable access to that information, the CMA said.

Alphabet shares fell 2.4% to $364.39 in US trading Tuesday after the announcement, reflecting investor concern about the financial impact of tighter oversight. The last time the UK imposed comparable digital market rules under the DMCC Act, the regulatory burden on large technology platforms increased compliance costs by an estimated 10% to 15% of annual revenue for affected services, according to research from the Centre for European Reform.

Google said its ranking systems are "fair, transparent, and show the most relevant, highest quality results." A company spokesperson said Google remains committed to protecting the integrity of its systems and will continue working with the CMA. The company had said in March it was developing new search controls to address concerns raised by British competition authorities.

The UK's approach mirrors regulatory trends in the European Union, where the Digital Markets Act has already forced Google and other large platforms to change how they operate. The CMA's decision to mandate data portability rights comparable to those in the EU suggests the UK is aligning its digital regulatory framework with Brussels even after Brexit, creating a more consistent compliance environment for global technology companies operating across both markets.

The CMA said it will monitor Google's compliance through regular reporting and engagement with businesses and other stakeholders. Additional measures could be introduced if necessary, particularly as search technology continues to evolve with AI-powered features. The regulator indicated further activity related to digital markets regulation is expected during the summer.

This article is for informational purposes only and does not constitute investment advice.