The United Kingdom has triggered new powers to regulate Google’s dominance in online search, marking a significant step in its effort to increase competition within the digital market. The Competition and Markets Authority (CMA) has officially designated Google as having “strategic market status” (SMS), granting it the authority to enforce targeted measures to ensure fair competition.
This is the first use of the UK’s Digital Markets, Competition and Consumers Act, which aims to curb the overwhelming control of major technology companies such as Google and Meta.
CMA Targets Big Tech to Ensure Fairer Market Competition
The CMA emphasized that the designation is not an accusation of wrongdoing, but rather a mechanism that allows it to take proportionate and targeted actions. The decision was based on findings that Google controls over 90% of all online searches conducted in the UK, giving it a dominant position in the search and search advertising sectors.
Will Hayter, Executive Director for Digital Markets at the CMA, said the authority’s goal is to ensure that search services remain “open to effective competition.” The CMA will now have the power to enforce operational changes if Google’s practices are found to be limiting competition or consumer choice.
Google Responds to UK’s Regulatory Action
In response, Google’s Senior Director for Competition, Oliver Bethell, expressed concern that some proposed interventions could potentially slow innovation and product development in the UK. He argued that restrictive measures might negatively affect local innovation, especially during a time of rapid AI-driven technological advancement.
Google recently announced an investment of £5 billion ($6.65 billion) in the UK, reflecting its commitment to expanding operations within the country. Bethell added that the company hopes the CMA’s approach will align with the best interests of UK consumers and businesses, promoting healthy competition without stifling innovation.
CMA Outlines Possible Measures to Promote Fair Search Practices
Earlier this year, the CMA had outlined possible steps to improve transparency and fairness in search rankings. These measures could include giving consumers easier access to alternative search engines and ensuring that smaller competitors have a fair opportunity to grow.
The regulator also confirmed that it could impose financial penalties for non-compliance and use its new enforcement powers to compel Google to adjust certain business practices.
According to the CMA, the designation allows the authority to introduce “proportionate and targeted interventions” to ensure that digital markets remain competitive. These interventions could affect how search results are displayed, how advertising is sold, and how user data is handled.
AI-Based Search Features Under Scrutiny
The CMA clarified that while Google’s Gemini AI assistant is not included in the current designation, the regulator will continue to monitor its development due to uncertainty surrounding the evolving AI market.
However, other AI-related search features, including AI Overviews and AI Mode, fall within the scope of the regulatory framework. This move signals that AI-enhanced search functions will face closer examination to prevent potential monopolistic behavior as Google integrates AI more deeply into its search ecosystem.
Broader Context: Global Scrutiny of Google and Big Tech
The UK’s decision follows a series of global investigations targeting Big Tech companies for anti-competitive practices. In the United States, the Federal Trade Commission (FTC) recently launched an investigation into Google and Amazon’s search advertising models. Meanwhile, the US Department of Justice has sought to force Google to divest some of its advertising technology operations to reduce its dominance.
These international actions highlight a broader movement by regulators worldwide to address Big Tech monopolies and foster digital fairness. The UK’s use of its new regulatory powers places it among the first nations actively enforcing such measures under a structured legal framework.
What Comes Next for Google in the UK
The CMA’s designation means that Google will now face ongoing scrutiny and compliance requirements in the UK. Future actions could include mandated transparency reports, changes to advertising policies, or restrictions on exclusive data practices.
While Google maintains that it operates in the best interests of users and businesses, the CMA’s oversight signals a new era of accountability for dominant digital platforms.
As the UK continues to refine its digital competition laws, the balance between innovation and regulation will remain a key focus for policymakers and technology leaders alike.
