UK Competition Watchdog Proposes New Controls Over Google's AI Search Features

The UK's Competition and Markets Authority has announced proposals that would enable web publishers to prevent Google from using their material in AI Overviews without forcing them to exit traditional search indexing entirely.

The regulatory intervention addresses mounting concerns from publishers who have recorded declining website traffic since Google began displaying AI-generated summaries at the top of search results. Under current arrangements, preventing content extraction for these AI features requires complete removal from Google's search engine, a commercially unviable option given the platform's market dominance.

The CMA launched a consultation on Wednesday proposing what it describes as fairer terms for content usage. The measures would allow publishers to opt out of having their material used in AI Overviews or for training AI models while maintaining visibility in conventional search results. The consultation will run for one month.

These proposals represent the first regulatory actions under the UK's updated digital markets competition framework. Additional measures announced by the watchdog include requirements for Google to rank search results impartially, avoiding preferential treatment for commercial partners or potential penalties against organisations that criticise the company. Google has stated it does not apply special treatment based on commercial relationships.

Publishers hope the regulatory changes will strengthen their negotiating position when seeking payment for content appearing in Google's AI features. However, the CMA indicated it would delay further action on ensuring fair compensation terms for publishers by approximately one year.

The News Media Association's chief executive, Owen Meredith, acknowledged the regulatory body had recognised Google's ability to extract valuable information without compensation, which he said damages publishers and creates unfair competitive advantages in the AI sector, including against British technology startups.

In response, Google cautioned that new controls must avoid fragmenting search functionality or creating confusion for users. The company added it is developing methods to allow news publishers to opt out of AI Overviews.

The CMA is also expected to mandate choice screens on Android devices and Google Chrome browsers, making it easier for users to select alternative search providers.

Recent research from the Reuters Institute for the Study of Journalism found media executives globally anticipate a 43 percent decline in search engine referrals over the next three years as AI summaries and chatbot interfaces become more prevalent.

Analytics data from Chartbeat covering over 2,500 news websites indicates Google search traffic has dropped 33 percent worldwide, with lifestyle, celebrity and travel content experiencing sharper declines than hard news and current affairs coverage.

CMA chief executive Sarah Cardell said the proposed measures would give UK businesses and consumers greater control over their interactions with Google search, create opportunities for innovation across the technology sector, and establish fairer terms for content publishers regarding the use of their material in AI Overviews.

Google's principal for product management, Ron Eden, stated the company aims to maintain search usefulness for people seeking quick information while providing websites with appropriate content management tools. He said Google would participate in the CMA's consultation process and continue discussions with website owners and stakeholders.

Industry Impact and Market Implications

The CMA's intervention signals a potential shift in how dominant technology platforms can leverage publisher content for AI development and deployment. If implemented, these measures could establish precedent for similar regulatory frameworks in other jurisdictions, particularly within the European Union where digital markets legislation already imposes strict requirements on large platforms.

For publishers, the ability to selectively opt out of AI features while remaining searchable represents a significant change in bargaining power. However, the effectiveness depends heavily on whether sufficient numbers of publishers coordinate their approach and whether Google implements alternative revenue sharing models to prevent mass opt-outs.

The broader technology sector may see increased regulatory scrutiny of AI training data practices. Companies developing large language models and AI search products may face growing pressure to establish transparent licensing agreements with content creators, potentially increasing operational costs and altering competitive dynamics in the AI market.

Google's response suggests the company recognises regulatory pressure is intensifying globally. The development of opt-out mechanisms indicates a strategic shift towards accommodating publisher concerns, though questions remain about whether such tools will genuinely protect publisher revenue or simply formalise existing traffic decline trends.

For the wider AI industry, this regulatory action underscores growing government willingness to intervene in data collection and usage practices, particularly where market dominance enables platform operators to set unilateral terms. Startups and emerging AI companies may benefit from regulatory efforts to level the competitive landscape, though compliance costs could equally present barriers to smaller operators.