Legal experts are backing the UK regulator’s move to take on Google, arguing that there is ample justification to address the “market distortions” caused by the company’s long-standing monopoly. The decision by the Competition and Market Authority (CMA) to apply “strategic market status” to Google is being seen as a legally sound and necessary step.
Tom Smith, a competition lawyer and former legal director at the CMA, stated there is a “very well-established case for removing some of the market distortions caused by Google’s monopoly position.” This sentiment reflects a broad consensus in the legal community that Google’s dominance is not just a result of a superior product but also of anti-competitive practices that have been challenged in courtrooms around the world.
The new “strategic market status” (SMS) designation provides the CMA with a powerful and tailored legal instrument to address these distortions directly, without having to go through lengthy and costly traditional antitrust investigations for every issue. The designation is based on Google’s market share of over 90%, which is considered prima facie evidence of significant market power.
The potential remedies, such as “choice screens” and fair ranking rules, are designed to correct specific distortions. Choice screens tackle the distortion created by default settings and lucrative payment-for-placement deals, while fair ranking rules aim to address the potential for Google to favor its own services over those of its rivals.
While Google has warned of a negative impact on innovation, the legal perspective suggests that the CMA is on firm ground. The action is seen as bringing the UK’s regulatory framework up to speed with that of the US and EU, which are already using their own legal tools to challenge Google’s conduct and restore a semblance of competition to digital markets.