UK and EU digital regulation take diverging paths

With new UK rules and digital interventions looming, the regulatory divide between the UK and EU over Big Tech and Artificial Intelligence is sharper than ever.

The United Kingdom and European Union are increasingly charting different courses in regulating digital markets and Big Tech, as highlighted by the recent moves of the Competition and Markets Authority (CMA). The CMA has published a provisional designation decision and outlined a possible roadmap for interventions in Google Search and Search Advertising, offering insight into how digital regulation is evolving in the region. Notably, the CMA is considering whether Google´s Gemini artificial intelligence assistant should be included within the scope of Google’s general search services, reflecting an effort to ensure the UK regime addresses rapidly shifting technologies while providing predictable oversight for businesses through a phased intervention strategy.

This shift comes as the UK’s new regulatory structure under the Digital Markets, Competition and Consumers Act 2024 begins to take shape. In a recent discussion with competition law experts, several key differences between the UK and the EU digital regulatory approaches emerged. The UK regime introduces bespoke designation of digital services and tailored conduct requirements, contrasting with the broader scope and fixed rules of the EU’s Digital Markets Act. These structural differences create distinct advantages and challenges: the UK’s methods may allow for more flexibility and adaptation, while the EU’s offer clarity and consistency for multinational companies operating across the single market.

Political dynamics also significantly impact regulatory strategies on both sides of the Channel. National developments in the UK, including the political climate, shape the CMA’s actions and willingness to introduce phased or bespoke measures for dominant digital players. At the same time, global geopolitics—particularly criticism from the United States regarding Europe’s aggressive stance toward Big Tech—are influencing regulatory rhetoric and actions. These pressures are pushing the UK and EU not only to assert their digital sovereignty but also to balance innovation, competition, and consumer welfare in a tech ecosystem increasingly driven by Artificial Intelligence and cross-border digital services.

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