The UK’s Competition and Markets Authority (CMA) has officially designated Google with "strategic market status" in the country’s search services sector, marking a significant step toward increased regulatory oversight of the tech giant’s dominance. This designation, established under the new Digital Markets Competition Regime that came into effect earlier this year, reflects the CMA’s concern over Google’s control of over 90% of search queries in the UK, underscoring its entrenched market position.

Although the CMA has yet to find any wrongdoing by Google, the new status enables the regulator to consider targeted interventions intended to promote competition and consumer choice. These measures could include the introduction of "choice screens" that offer users visible alternatives to Google’s search engine, establishing fair and non-discriminatory principles for ranking websites, and empowering publishers with greater control over how their content appears in search results. The CMA also indicated it is exploring ways to enhance data portability to support innovation among emerging competitors. These steps aim to create a more competitive market environment while ensuring that businesses and consumers are treated fairly.

Google has voiced concerns that such regulatory interventions might hinder innovation and economic growth. Oliver Bethell, Google’s competition chief, argued in a blog post that UK businesses and consumers have benefited from Google’s innovations, often gaining access to new technologies months earlier than European counterparts. He further pointed out that Google Search contributed an estimated £118 billion to the UK economy in 2023 alone. According to Bethell, some of the proposed interventions could slow down product launches during a critical period of AI-driven innovation.

The CMA’s designation follows an extended investigation launched in early 2025 to assess Google’s impact on competition and user choice within the search and online advertising markets. The regulator’s roadmap, unveiled earlier, outlines potential targeted measures that could reshape the way search services operate in the UK. These include both technical solutions, such as choice screens, and procedural safeguards like an effective complaints process allowing businesses to challenge unfair search listings.

Consumer advocacy groups have welcomed the CMA’s decision, viewing it as a crucial move to challenge Google’s dominance. For instance, Which? policy lead Rocio Concha described the regulator’s evidence as compelling, stressing the importance of regulatory action to address Google’s substantial market power, especially as generative AI tools reshape the search landscape.

This regulatory move places the UK among several jurisdictions intensifying scrutiny of major tech firms. Recently, Google faced a €2.95 billion fine from the European Union over alleged abuse of its advertising technology dominance. In the United States, legal battles continue over Google’s control of the Google Play Store and other core products, though the company recently avoided mandates to divest its Chrome browser or Android operating system.

The CMA expects to begin a public consultation on possible interventions later in 2025. While it remains to be seen how the proposed changes will be implemented, the designation signals a growing willingness by UK regulators to hold powerful digital platforms accountable and foster a more competitive digital economy.

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Source: Noah Wire Services