The search giant claimed that plans to make it offer consumers a choice of rival AI products such as ChatGPT and Claude, rather than its Gemini AI, was anti-competitive and against its own rules.

The CMA launched a consultation on forcing Google to promote rival search engines in January after designating Google with “strategic market status” last October. The consultation was broadened out to include AI in September.

Under the proposals, Google would be required to display a pop-up screen offering a choice of rival search engines and AI assistants in order to promote competition.

In a response to a CMA consultation, Google argued that the regulator had explicitly excluded AI assistants from the original scope of the market investigation. Therefore, “the Consultation’s approach, if enacted in the [Conduct Requirements], would be unlawful,” Google argued.

The tech giant added: “Rival search services, whose growth the CMA intended to support, would be crowded out by already-successful AI assistants.”

Google added that prompting AI through its search engine would also harm publishers, given that AI leads to far fewer visits to news websites than traditional search.

The row comes amid a fierce competition between tech giants in the AI race. In 2023, Google declared a “code red” as ChatGPT threatened to displace its search engine. The company has since poured huge sums into its rival Gemini AI to head off the threat and build market share.

Google’s criticism heightens pre-existing tensions between the tech giant and the CMA. After being labelled with strategic market status last year, Google warned that “punitive regulations” risk turning the CMA into a “roadblock to UK growth”, and could delay the rollout of new products in Britain.

The CMA has had a fraught relationship with US tech companies more broadly. Microsoft lambasted the watchdog for blocking its deal to buy video game maker Activision in 2023. Brad Smith, Microsoft’s president, called the decision “bad for Britain” at the time.

Concerns that the watchdog’s zealous attitude to enforcement may be holding back growth prompted Rachel Reeves, the then-chancellor, to oust CMA chairman Marcus Bokkerink in 2025 and demand that economic regulators strip back rules.

The watchdog is separately weighing “strategic market status” for Microsoft over its bundling of its Copilot AI into enterprise software.

It follows an inquiry launched in May into whether Microsoft’s software ecosystem, used by around 20 million Britons each month, stifles competition.

Microsoft rejected the claim, maintaining that its software, including Copilot, remains “open and interoperable” with rival platforms.

On the Google consultation, a CMA spokesman said: “We are reviewing all responses ahead of making final decisions.”

Google was contacted for comment.

‘Disregard’ of Parliament

Separately, Amazon and TikTok were accused of being in “disregard” of Parliament after the two companies refused to put up bosses to answer questions from MPs.

Liam Byrne, the Labour MP who chairs the business select committee, has written to senior executives at the companies requesting that they rethink their stance.

The all-party committee had asked Amazon and TikTok to provide representatives for questioning at a session on consumer protection covering a range of issues such as pricing tactics and fraud prevention on Nov 3.

In the letters, Mr Byrne said he was concerned “about your reluctance to appear” before the committee.

He added: “The hearing will consider important and timely consumer protection matters relating to the regulation of online marketplaces, and the sale of products within them.

“Disregard of parliamentary oversight reflects badly on your company’s willingness to engage with policymakers, and hampers the committee’s ability to ensure regulation and protections are fit for purpose.”

Committee officials are believed to have first sent invitations to Amazon and TikTok around a month ago, but both companies said no one was available.

A committee source said the e-commerce giants may be “empty chaired” if they stick with their decision. However, it is thought unlikely that parliamentary powers will be used to summon them and force attendance.

An Amazon spokesman said: “Given the broad focus of the session proposed by the committee, ranging from pricing strategy, search results, payment methods, fraud prevention, and liability, we’ve offered written evidence in lieu of providing a single witness unable to speak across these topics.

“Amazon has given evidence to this committee twice in recent years and we’re hosting the committee at one of our sites in the coming weeks.”

No one from TikTok was available for comment.

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