Introduction: Google must give UK publishers choice to block AI search summaries, says competition watchdog<\/p>\n
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n
The UK\u2019s competition watchdog has announced that web publishers and news organisations will now be able to opt out of AI overviews of Google search results.<\/p>\n
The Competition and Markets Authority (CMA) has said its new rules will put \u201cpublishers, like news organisations, in a stronger position to negotiate content deals with Google\u201d.<\/p>\n
The intervention comes after complaints by media organisations that they have experienced a drop in click-through traffic to their websites \u2013 and therefore their revenue \u2013 since Google started posting AI summaries at the top of search results.<\/p>\n
CMA chief executive Sarah Cardell said in a statement:<\/p>\n
double quotation markWith features like AI Overviews rapidly reshaping online search, it is crucial that content publishers, including news organisations, have appropriate bargaining power over how their content is used. At the same time, these measures will help tens of millions of UK search users better understand and trust the information presented to them.<\/p>\n
It\u2019s also important that any action we take in this space can move with the times. Google has recently announced changes to its search business and the requirements we\u2019ve introduced today are designed to respond to what Google is doing now and in the future. We\u2019ll also continue to use the unique flexibility of the UK regime to monitor and address future concerns as they arise and we will be announcing further action in relation to Google\u2019s search business in the coming weeks.<\/p>\n
Under the new rules, Google will also now have to make sure that publisher content is \u201cproperly attributed\u201d, using clear links in AI search results.<\/p>\n
It will also have to allow publishers to opt out of allowing their content to be used for the \u201cfine-tuning of AI models\u201d which will provide \u201cpublishers with confidence that they will have control over the full range of AI use-cases of their content\u201d, the CMA said.<\/p>\n
The agenda<\/p>\n
9am BST: Eurozone services PMI<\/p>\n
9.30am BST: UK services PMI<\/p>\n
3pm BST: US services PMI<\/p>\n
Today: St Petersburg International Economic Forum<\/p>\n
Today: FTSE<\/a> reshuffle to be announced after market close<\/p>\n Share<\/a><\/p>\n Key events<\/p>\n OECD predicts spate of recessions globally if Iran conflict drags into 2027<\/p>\n Elsewhere this morning, the Organisation for Economic Co-operation and Development has warned that if the Middle East conflict drags on into next year it will hit global growth hard, driving some economies into recession and causing energy shortages.<\/p>\n In its latest Economic Outlook, the Paris-based club of industrialised countries lays out a \u201cprolonged disruption\u201d scenario, in which there is no agreement between the US and Iran<\/a> until 2027.<\/p>\n It forecasts such a scenario would reduce global GDP growth to 2.1% this year, from 3.4% in 2025, \u201cpushing some economies into or close to recession\u201d \u2013 with emerging economies hit hardest.<\/p>\n Read the full story here by Heather Stewart:<\/p>\n Share<\/a><\/p>\n While the mood across the FTSE<\/a> is overall a bit glum this morning, there\u2019s one clear standout \u2013 shares in B&M European Value Retail have jumped 16%, even after the retailer reported that its pre-tax profit dropped 38% to \u00a3284m.<\/p>\n However, investors had been expecting a fall, and therefore are focused more on how well the company\u2019s turnaround plan is going.<\/p>\n Susannah Streeter, of the broker Wealth Club, says:<\/p>\n double quotation markUK like-for-like sales returned to marginal growth in the fourth quarter and management said its \u201cBack to B&M Basics\u201d programme is delivering early progress. There are hopes that B&M has reached the nadir of poor performance and that its product line revamps and tighter cost controls, alongside its locations in popular retail parks will mean there will be more progress ahead.<\/p>\n Share<\/a>European stock markets open lower<\/p>\n European stock markets have opened mostly in the red this morning \u2013 the UK\u2019s blue chip FTSE<\/a> 100 index is down 0.5%. The German Dax is down 0.8% and the French Cac 40 is down 0.43%.<\/p>\n The Stoxx Europe 600, which tracks the biggest listed companies on the continent, is down 0.4%.<\/p>\n Share<\/a>Ovo agrees to \u00a311.4m settlement Ofgem over prepayment meters<\/p>\n Ovo Energy has agreed to pay mre than \u00a310m after the energy reulator found that vulnerable customers were left at a \u201crisk of harm\u201d due to the supplier\u2019s inadequate monitoring of households on prepayment meters.<\/p>\n Ovo has agreed to a settlement including a \u00a37m payment to Ofgem\u2019s voluntary redress fund and a \u00a33.4m package of credit and debt relief for some of its most vulnerable customers, which the regulator said was in lieu of compensation.<\/p>\n Cathryn Scott, director of market oversight and enforcement for Ofgem, said:<\/p>\n double quotation markIt is clear that OVO fell short in its support of vulnerable PPM customers, and it\u2019s right that they\u2019ve taken action to improve their processes. As a result of our investigation, vulnerable customers will receive debt write-off or credit payments alongside a payment into our voluntary redress fund.<\/p>\n Prepayment meters are a positive choice for many customers, helping them stay in control of their energy use and reporting high levels of satisfaction \u2013 but it\u2019s not suitable for everyone and strong monitoring must be in place to protect vulnerable consumers.<\/p>\n This investigation forms part of Ofgem\u2019s wider work to raise standards across the energy market and strengthen consumer protections, challenging suppliers to do more to identify and support customers in difficulty.<\/p>\n Anyone worried about paying their bill should contact their supplier as early as possible to access the support available and discuss the options that suit their circumstances.\u201d<\/p>\n In January, the regulator also ordered Ovo to pay a \u00a32.7m penalty<\/a> after it found it had failed to pass on government support payments for winter energy bills to thousands of vulnerable customers during the energy cost crisis.<\/p>\n Share<\/a><\/p>\n A one-person household could need up to half a million pounds for a \u201cmoderate\u201d lifestyle in retirement, industry calculations suggest.<\/p>\n Here\u2019s an illustrative table from Pensions UK, which gives a guide to the level of annual private income or pension savings that are needed to meet each retirement living standard. It is based on turning a defined contribution pension into an annuity \u2013 a retirement product which exchange a cash lump sum for guaranteed income until death.<\/p>\n It is important to remember too that these figures assume that the retiree will receive the full state pension, and has no rent or mortgage costs. The calculations are also based on current UK tax thresholds, and annuity assumptions of around \u00a35,000 \u2013 \u00a37,500 per \u00a3100,000 of pension savings.<\/p>\n Pensions UK estimates Illustration: Pensions UKShare<\/a>Three quarters of workers not saving enough for ‘moderate’ pension income, industry warns<\/p>\n Elsewhere this morning, the pensions industry has warned that about 75% of workers are not saving enough for a \u201cmoderate\u201d income in retirement, with many people facing a \u201ccliff edge drop\u201d when they stop work.<\/p>\n Industry body Pensions UK has said only 23% of the working population are on tack for a moderate lifestyle, which would require an income of \u00a332,700 for a one-person household and \u00a345,500 for two people.<\/p>\n A \u201cminimum\u201d retirement lifestyle costs \u00a313,900 a year for a one-person household and \u00a322,500 for two people, while a \u201ccomfortable\u201d lifestyle costs \u00a345,400 and \u00a362,700 respectively.<\/p>\n The figures reflect everyday costs such as food, essential household bills and transport, as well as social activities and hobbies. 82% of people are expected to meet the minimum level.<\/p>\n However, all three levels assume receipt of the full state pension and no rent or mortgage costs.<\/p>\n Zoe Alexander, executive director of policy and advocacy at Pensions UK, said:<\/p>\n double quotation markThe latest update to the retirement living standards underlines a clear reality for many people \u2013 today\u2019s saving levels will not be enough for the retirement they expect.<\/p>\n Without action, too many risk facing a cliff edge drop in income when they stop work.\u201d<\/p>\n Ms Alexander added: \u201cWe also encourage people to speak to their employer and see whether the organisation is prepared to support them to save above the minimum, such as higher rates of matching pension contributions.\u201d<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.42 EDT<\/p>\n Google will start testing new search changes on ‘subset’ of UK website owners today<\/p>\n Google has said it will immediately start testing new changes that will allow a \u201csubset of website owners\u201d in the UK to manage how their links and content appear in generative AI search features.<\/p>\n Mrinalini Loew, general manager at Google Search Ecosystem, wrote in a blog post <\/a>today:<\/p>\n double quotation markWe\u2019re also actively listening to feedback from publishers and creators, and engaging with regulators like the UK\u2019s Competition and Markets Authority to ensure website owners have the right tools as user preferences evolve. Today, we\u2019re beginning to test a new control that lets website owners manage how their links and content appear in generative AI Search features.<\/p>\n A new tool will allow website owners to decide if they want their site to appear in and help \u201cground responses\u201d in Google\u2019s AI search features such as AI overviews and AI mode.<\/p>\n The control will not be used as a ranking signal for search results outside the generative AI Search features, Loew said.<\/p>\n double quotation markWe\u2019re also starting to roll out new insights for website owners in Search Console about the appearance of their pages in generative AI Search features. These insights include impressions metrics and information about which pages appear in AI responses and in what countries. We\u2019re continuing to work with website owners to understand what insights will be most helpful to inform their strategies, and we\u2019ll introduce additional metrics over time.<\/p>\n We are beginning to roll these features out to a subset of website owners in the UK, allowing for thorough testing before rolling them out to website owners globally. As AI opens up new opportunities for discovery, we\u2019ll keep improving our experiences to help people explore the web, and keep building tools for websites to better engage their audiences<\/p>\n Share<\/a><\/p>\n Updated at\u00a002.53 EDT<\/p>\n Google has nine months to implement changes to its search, regulator says<\/p>\n Google has nine months to implement all the required changes to its search services, the competition regulator has said.<\/p>\n However, the CMA has said it expects \u201cimportant parts of the controls to become available to publishers well before that deadline\u201d.<\/p>\n The regulator has also asked Google to submit and publish compliance reports, explaining changes it has made and how it has complied. These are due every six months for the first year, after which the CMA will then review the frequency of reporting.<\/p>\n Google is not the only big tech company under the CMA\u2019s sights \u2013 the regulator has launched strategic market status investigations into Apple and Microsoft, too.<\/p>\n Share<\/a><\/p>\n The rules announced today come after the CMA decided last year to designate <\/a>Google<\/a> with strategic market status<\/a> in general search services, a term that means the company has such market power that it requires a special regulatory regime.<\/p>\n The watchdog has the power under new digital laws to order changes to how Google operates in those areas.<\/p>\n It will be a welcome change for many news media organisations and web publishers, who are hoping that it could increase their leverage to get paid if their content is used in Google\u2019s AI mode.<\/p>\n Cardell has also said this morning that Google\u2019s compliance would be actively monitored and that the regulator will be \u201cannouncing further action in relation to Google\u2019s search business in the coming weeks\u201d.<\/p>\n Share<\/a>Introduction: Google must give UK publishers choice to block AI search summaries, says competition watchdog<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n The UK\u2019s competition watchdog has announced that web publishers and news organisations will now be able to opt out of AI overviews of Google search results.<\/p>\n The Competition and Markets Authority (CMA) has said its new rules will put \u201cpublishers, like news organisations, in a stronger position to negotiate content deals with Google\u201d.<\/p>\n The intervention comes after complaints by media organisations that they have experienced a drop in click-through traffic to their websites \u2013 and therefore their revenue \u2013 since Google started posting AI summaries at the top of search results.<\/p>\n CMA chief executive Sarah Cardell said in a statement:<\/p>\n double quotation markWith features like AI Overviews rapidly reshaping online search, it is crucial that content publishers, including news organisations, have appropriate bargaining power over how their content is used. At the same time, these measures will help tens of millions of UK search users better understand and trust the information presented to them.<\/p>\n It\u2019s also important that any action we take in this space can move with the times. Google has recently announced changes to its search business and the requirements we\u2019ve introduced today are designed to respond to what Google is doing now and in the future. We\u2019ll also continue to use the unique flexibility of the UK regime to monitor and address future concerns as they arise and we will be announcing further action in relation to Google\u2019s search business in the coming weeks.<\/p>\n Under the new rules, Google will also now have to make sure that publisher content is \u201cproperly attributed\u201d, using clear links in AI search results.<\/p>\n It will also have to allow publishers to opt out of allowing their content to be used for the \u201cfine-tuning of AI models\u201d which will provide \u201cpublishers with confidence that they will have control over the full range of AI use-cases of their content\u201d, the CMA said.<\/p>\n The agenda<\/p>\n 9am BST: Eurozone services PMI<\/p>\n 9.30am BST: UK services PMI<\/p>\n 3pm BST: US services PMI<\/p>\n Today: St Petersburg International Economic Forum<\/p>\n Today: FTSE<\/a> reshuffle to be announced after market close<\/p>\n