UK CMA grants Google strategic market status in search
The Competition and Markets Authority (CMA) has designated Google as a company with strategic market status (SMS) in the UK search and search advertising sectors. This is the first time the CMA has applied the designation to a tech firm, and it signals that Google could face a heightened regulatory regime designed to promote competition and protect users in a rapidly evolving digital landscape.
What SMS means for Google and UK users
Strategic market status does not imply wrongdoing. Rather, it acknowledges a company’s dominant position and empowers the CMA to consider specific interventions under new digital market laws. The CMA can now order changes to how Google operates in search and search advertising if it believes those changes will benefit competition and consumers.
Potential interventions under SMS
In a statement, the CMA outlined several possible measures it could pursue. Among the most talked-about is the introduction of “choice screens” that would allow internet users to select a different search service as default. The CMA is weighing options that could include AI-powered rivals in the mix, potentially expanding beyond traditional search engines to include platforms that use artificial intelligence to generate results.
Ensuring fair rankings and content use
Beyond the choice screen, the CMA is considering rules to ensure fair ranking of search results. This would aim to prevent disadvantageous practices that could skew visibility for smaller rivals or independent publishers. The CMA is also exploring greater control for publishers over how their content is used, including in AI-generated responses. If implemented, these measures could change how content is repurposed by search platforms and in turn how publishers monetize their material.
regulator’s stance and timeline
The CMA stressed that the decision is a formal acknowledgment of Google’s market position rather than an accusation of misconduct. The watchdog emphasised that SMS equips it to interrogate and potentially mandate changes to Google’s UK operations as part of a broader strategy to bolster competition in digital markets.
Industry reaction and potential impact
Google’s leadership in the UK search space is underscored by data showing the company processes more than 90% of UK searches. CMA executives say this dominance can curb innovation and limit the choices available to both consumers and advertisers if left unchecked. The SMS designation, therefore, is a signal that the CMA believes targeted remedies could unlock opportunities and stimulate investment in the UK’s digital economy.
Oliver Bethell, Google’s senior director for competition, warned that some contemplated interventions might hinder UK innovation and slow the rollout of AI-enhanced products. He argued that proactive changes could impede the very innovation the sector is now racing to deliver, especially as AI-based tools become more integrated with search.
What happens next?
The CMA will launch a public consultation on potential changes to Google’s UK operations later this year. The process will invite feedback from consumers, businesses, publishers, and other stakeholders. The aim is to gather a robust evidence base to determine which measures, if any, should be introduced and how they should be designed to minimize disruption while maximizing consumer welfare.
Why this matters for the UK economy and tech ecosystem
Promoting competition in search and search advertising can drive better prices, more choice, and faster innovation across the digital economy. With SMS in place, the CMA hopes to create a more level playing field for rivals and encourage publishers to adapt to a landscape where content is more discoverable and used more fairly. This move also reflects broader global concerns about the market power of a handful of tech giants and the need for proportional, evidence-based regulation that keeps pace with AI-driven advancements.
For businesses and consumers, the key takeaway is that the UK regulatory environment is actively seeking balanced interventions that protect user interests without stifling the innovation that underpins future AI-powered services.
