The Center for Data Innovation submitted these comments in response to the Competition and Markets Authority (CMA)’s call for views on its proposed decision report as part of its strategic market status (SMS) investigation into Google’s provision of general search services under Part 1 of the Digital Markets, Competition and Consumers Act (DMCCA) 2024. The CMA proposed to designate Google as having SMS in general search services.
The Center recommends that the CMA avoid regulatory overreach under the new DMCCA regime by maintaining clear boundaries between distinct digital markets and recognising the importance of dynamic competition to support innovation and regulatory predictability whilst addressing concerns over search market concentration.
In particular, the CMA should:
- Limit the scope of the proposed SMS designation to clear boundaries that do not bleed into other, distinct digital markets; and
- Explicitly factor in the disruptive potential of AI as part of its assessment of “substantial and entrenched market power”.
