UK Declares Google Search Power ‘Strategic,’ Paving Way for Tougher Regulation

UK Declares Google Search Power ‘Strategic,’ Paving Way for Tougher Regulation


The United Kingdom (UK) Competition and Markets Authority (CMA) has formally designated Google search and search advertising services with “strategic market status” (SMS).

Coming under the country’s new digital markets regime aimed at curbing monopoly and ensuring fairer competition, the decision follows months of investigation and consultation involving more than 80 stakeholders, including direct engagement with Google. 

According to the CMA, Google’s market position in the UK is “substantial and entrenched,” with the company commanding more than 90% of all search queries conducted in the country.

Will Hayter, executive director for Digital Markets at the CMA, said: “By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy. We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform.”

The designation does not amount to a finding of wrongdoing, nor does it impose immediate obligations. However, it grants the CMA the legal authority to enforce targeted decisions when necessary, including measures to enhance transparency and open access in the digital search market.

Under the new framework, which came into effect on January 1, 2025, the CMA has powers to issue binding conduct requirements and penalties for non-compliance. These measures are designed to ensure that technology firms operating in the UK do not exploit their market monopoly to the detriment of competitors and consumers.

In June, the regulator had outlined potential steps such as ensuring fairer search result rankings and offering users greater access to alternative search engines. It also clarified that Google’s AI-based features, including AI Mode and AI Overviews, fall within the scope of this designation, though its Gemini AI assistant is excluded for now, with its status to be reviewed as the market evolves.

Responding to the CMA’s decision, Oliver Bethell, Google’s senior director for Competition, spoke on the potential impact on innovation:

Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.

The CMA, however, insists its approach will remain “targeted and proportionate,” aiming to drive innovation while ensuring fair play in digital markets. The regulator is expected to consult on specific interventions later this year.






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Source: Techeconomy

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