Google (GOOGL) Stock Slides as UK Forces AI Search Opt-Out Rules

TLDR

• The UK’s Competition and Markets Authority (CMA) has imposed new conduct rules on Google’s search business
• Publishers can now opt out of having their content used in Google’s AI search features
• Google accounts for over 90% of UK search queries and holds “strategic market status” under UK law
• Click-through rates for news sites have dropped as users rely more on AI-generated overviews
• GOOGL stock fell 3.86% on the news

GOOGL dropped 3.86% and GOOG fell 3.81% on Wednesday after the UK’s Competition and Markets Authority announced new rules targeting Google’s AI search features.

Alphabet Inc., GOOGL

The CMA designated Google with “strategic market status” — a label that gives UK regulators the power to set targeted rules on how the company operates. It’s a significant lever, and the regulator is using it.

Under the new requirements, publishers — including news organisations — can now choose to stop their content from being used to power Google’s AI Overviews and AI Mode features.

Sites that opt out won’t receive traffic from those AI-powered features, but their presence in traditional search results won’t be affected.

Google holds more than 90% of UK search queries, which is exactly why regulators have been watching closely.

Publishers Losing Traffic

News publishers have been feeling the squeeze. Click-through rates have dropped sharply as users increasingly rely on AI-generated summaries rather than clicking through to source articles.

The regulator also said Google must properly attribute content from publishers in AI-generated results, using clear links — not just pulling text anonymously into an overview.

What Google Is Doing

Google said it is testing a new control that lets site owners manage how their links and content appear in AI search features.

It also said it plans to increase the number of links included in AI responses and is rolling out new insights tools for publishers.

Google faces regulatory pressure in multiple markets. The US Department of Justice has its own ongoing antitrust case, and the EU has been active on similar fronts.

In March, Google said it was developing new search controls specifically to address UK competition concerns — Wednesday’s announcement from the CMA appears to be the formal follow-through on that process.

Google did not immediately respond to a request for comment.

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