UK watchdog introduces new rules for Google's AI search results

(Alliance News) - Alphabet Inc's Google will face tighter controls on its use of artificial intelligence going forwards, the UK Competition & Markets Authority said on Wednesday.

The watchdog is implementing new conduct requirements under its digital markets regime. Online publishers will be able to opt out of their content being used for Google search's AI function.

"The requirement will secure a fairer deal for publishers and consumers and improve Google’s search services in the UK," the CMA said.

"This will put publishers, like news organisations, in a stronger position to negotiate content deals with Google," it added.

Google's AI offering, known as Gemini, scrapes content from different websites to generate summaries in response to online search prompts.

The CMA's new rules will require Google to ensure that content used in AI search results is properly attributed, and will also allow publishers to opt out of their content being used to fine-tune AI models.

Google will have nine months to implement the changes, though the CMA said it "expects important parts of the controls to become available to publishers well before that deadline". Google must also publish compliance reports every six months for the first year, with reporting frequency to be reviewed thereafter.

This follows the regulator's decision to designate Google with "strategic market status" in recognition of its dominant position among search engine operators. The designation is what enables the CMA to enforce new rules which it deems "proportionate for the purposes of ensuring fair dealing, open choices or trust and transparency".

"In May, Google announced significant changes to its search platform to further embed AI technologies, which could fundamentally change how search results are presented to users in the UK. This conduct requirement will apply to those changes," the regulator noted.

"The CMA is actively monitoring how Google is implementing these changes - including assessing the implications for businesses. If needed, the CMA will bring forward work on further measures to ensure a fair exchange of value between Google and publishers."

CMA Chief Executive Sarah Cardell added: "The requirements we’ve introduced today are designed to respond to what Google is doing now and in the future. We’ll also continue to use the unique flexibility of the UK regime to monitor and address future concerns as they arise and we will be announcing further action in relation to Google’s search business in the coming weeks."

The CMA has launched four strategic market investigations including one into Microsoft Corp's business software ecosystem. Alongside Google, it is investigating Apple Inc.

Alphabet Class A shares rose 0.1% to USD362.15 during pre-market trading on Wednesday in New York.

By Holly Munks, Alliance News reporter

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