Khaberni - Google, a subsidiary of Alphabet, has become the first company to be classified as having what is called "strategic market status" in the UK, which exposes the American company's online search and advertising business to stricter scrutiny by the competition authority.
The Competition and Markets Authority said that Google's established market power warrants this classification, which aims to ensure competition in digital markets.
The authority expressed concerns about the fairness of Google's search results, the high costs of advertising, and search results generated by artificial intelligence, according to a report seen by "Al Arabiya Business" from Bloomberg.
The Competition and Markets Authority stated in a release: "Google has significant and established market power in general search and search advertising."
Oliver Bethell, Head of Competition Affairs at Google, after the announcement of this classification, stated that the UK should avoid "costly restrictions" and "overly strict regulations."
Bethell added: "Many of the intervention ideas proposed in this process would hinder innovation and growth in the UK, and may slow down product rollouts."
The UK's move to rein in Google follows a wave of penalties imposed by the European Union on the company for its practices.
Last month, the European Union announced a fine of nearly 3 billion euros ($3.5 billion) against Google, and ordered the search giant to stop favoring its own advertising technology services. President Donald Trump described this action as "very unfair" and threatened to impose higher tariffs in response.
The UK's classification falls within stricter rules for regulating competition in digital markets in the country, which came into effect earlier this year.
This classification does not mean that Google engaged in anti-competitive behavior, but it opens the door for actions - such as imposing sanctions and regulatory measures - to address the way the company manages search services in the UK.
