The Competition and Markets Authority (CMA) in October paved the way for tougher regulation on the matter, under new targeted measures focused on technology giants.
Last year it designated Google with "strategic market status" (SMS), subjecting it to special requirements, following a nine-month investigation.
CMA chief executive Sarah Cardell said Wednesday that the regulator's proposal, which is out for consultation until February 25, "would give UK businesses and consumers more choice and control over how they interact with Google's search services".
She added in a statement that it "would also provide a fairer deal for content publishers, particularly news organisations, over how their content is used in Google's AI Overviews".
The CMA proposed that publishers "be able to opt out of their content being used to power AI features such as AI Overviews or to train AI models outside of Google search".
"Google will also be required to take practical steps to ensure publisher content is properly attributed in AI results," it added.
Website publishers, particularly media outlets, say that AI pilfers their content without compensation to feed its models.
They also argue that the AI-generated summaries discourage clicks to publishers' original pages, reducing traffic to their sites and in turn cutting their advertising revenue.
"Google is able to extract valuable data without reward, harming publishers and giving the company an unfair advantage over competitors in the AI model market," said Owen Meredith, chief executive of industry group, News Media Association.
- 'Confusing experience' -
Google's search engine accounts for more than 90 percent of online enquiries in the UK, according to the regulator.
It also says that over 200,000 businesses in the UK rely on Google search advertising to reach customers.
Responding to the watchdog's announcement, Google said it was already exploring updates to its controls "to let sites specifically opt out of search generative AI features".
"Any new controls need to avoid breaking search in a way that leads to a fragmented or confusing experience for people," the company's principal for product management, Ron Eden, said in a statement.
Among its other proposals, the CMA suggests displaying a screen to facilitate changing a user's default search engine, and rules guaranteeing a fair ranking of results, which Google should be able to demonstrate.
"These measures will give publishers -- including news and other content producers -- stronger bargaining power and support the long-term sustainability of trusted information online," Will Hayter, executive director for digital markets at the CMA, said in a blog post.
"They will also help people verify sources in AI-generated results and build trust in what they see," he added.
The UK's stricter regulation is modelled on the European Union's Digital Markets Act (DMA), which a handful of tech giants -- including Apple, Google, and Meta -- must comply with.
Google employs more than 7,000 people in the UK, according to its website.
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