Google and the CMA: A test case for DMCCA conduct requirements

After becoming the first organisation to be designated by the Competition and Markets Authority (“CMA”) as having strategic market status (“SMS”), Google has now become the first undertaking to be subject to proposed conduct requirements. If imposed, Google will likely be required to make a number of changes, including to its AI Overviews.

The below article considers what the new SMS regime involves and the potential impact of the CMA’s proposed requirements.

The Digital Markets, Competition and Consumers Act 2024

The Digital Markets, Competition and Consumers Act 2024 (“DMCCA”) came into force on 6 April 2025. This gave the CMA the ability to designate undertakings as having SMS where the undertaking has substantial and entrenched market power and a position of strategic significance in respect of a digital activity. Once designated, the CMA can impose so called “conduct requirements”. This requires the designated undertaking to conduct itself in a specific way in relation to the digital activity.

In accordance with section 19(5) DMCCA, any conduct requirements imposed by the CMA must be proportionate for the purposes of one or more of the following:

• The fair dealing objective;
• The open choices objective; and
• The trust and transparency objective.

Additionally, the CMA must carry out a public consultation on the conduct requirements it proposes.

Google conduct requirements

In the case of Google, the CMA published a roadmap of possible interventions concerning the general search services provided by Google in June 2025. The scope of the interventions has since been narrowed with the consultation primarily focussing on the following four issues:

1. the option for content producers to opt out of having their content used in Google’s AI overviews or the training of their AI models. Where such content is used in AI results, Google will have to properly attribute the content;
2. ensuring fairness and transparency in Google search rankings, including AI overviews and AI mode. This is to be coupled with a more robust complaints process in respect of ranking issues;
3. the introduction of choice screens, giving users an easy way to switch their default search provider on Android devices and the Chrome browser; and
4. enabling individuals and businesses to use Google search data by placing current data portability mechanisms on a legal footing.

The CMA’s designation lasts 5 years and, if the above measures are imposed following the public consultation, Google’s failure to comply with the conduct requirements can result in fines of up to 10% of Google’s global turnover.

AI spotlight

Whilst the conduct requirements go beyond AI, the ability of content producers to opt out of Google’s AI overviews is a key issue. By displaying content in the AI overview, Google is reducing the need for users to click on a page to obtain information which has an impact on search rankings and the potential for content producers to earn revenue from paid advertisements. In the case of many news publishers, it likely reduces the number of users paying a monthly subscription fee to opt out of accepting cookies.

For Google, if reputable publishers decide to opt out of AI overviews, there could be a reduction in the quality of the service. This could result in alternative incentives being offer, for example, licensing deals or revenue sharing for overviews featuring specific content. However, adopting such a model would increase both the operational and compliance complexity. The impact of any conduct requirements imposed against Google will also likely have far reaching implications for other search engines offering AI powered summaries.

The consultation

The CMA’s consultation closes on 25 February 2026 and it will be interesting to see the approach adopted by respondents. There is the potential for there to be a clear divide between businesses seeking to increase revenues and users looking to find information in the most efficient way possible and avoid paying fees or handing over their data to access content. Irrespective of the result of the consultation, the outcome will likely be treated as a test case by the CMA informing the adoption of future conduct requirements under the DMCCA.