On Tuesday, the Competition and Markets Authority (CMA) launched a formal consultation to determine whether Google should be classified as holding Strategic Market Status (SMS) in the general search market.
If the CMA designates Google under this new status, enabled by powers granted under the Digital Markets, Competition and Consumers Act that took effect earlier this year, the tech giant would face a set of binding obligations.
These include offering users alternatives to Google Search, giving publishers more control over how their content is used, and ensuring that businesses have fair access to search visibility. Simply put, the UK is moving to weaken Google’s grip on online discovery.
“Google search accounts for more than 90% of all general search queries in the UK, with millions of people relying on it as a key gateway to the internet,” said Sarah Cardell, CEO of the CMA. “If competition was working well, we would expect these costs to be lower.”
The regulator is particularly concerned about the implications of Google’s market monopoly on innovation, business costs, and user choice. In 2023 alone, UK businesses reportedly spent over £33,000 per advertiser on Google search ads, a figure the CMA believes reflects limited competitive pressure.
Should the SMS designation go through, Google would be required to implement “choice screens” that allow users to switch easily between competing search engines, including potentially AI-driven assistants.
It would also have to ensure transparent and non-discriminatory search result rankings, a demand long stated by publishers and rival firms.
Another focus is how Google’s AI-enabled search features, such as AI Overviews, use third-party content. The CMA wants publishers to have more say in how their work is used, particularly given that such content often drive these AI-generated results without sufficient visibility or compensation.
The regulator hasn’t shied away from the fact that this is a transition in oversight. While the EU has already introduced digital regulations under the Digital Markets Act, the UK is opting for a case-by-case, targeted approach that still carries substantial consequences.
The CMA now has the authority to impose fines and enforce decisions directly, a post-Brexit empowerment it intends to wield.
Google, unsurprisingly, has objected. “Punitive regulation could stop us bringing new features and services to Britain,” warned Oliver Bethell, Google’s senior director for competition. He added, “Proportionate, evidence-based regulation will be essential to preventing the CMA’s roadmap from becoming a roadblock to growth in the UK.”
Though the CMA is quick to stress that its proposed intervention is not a judgment of wrongdoing, it’s also clear that the agency believes Google has used its authority to suppress innovation.
Beyond traditional search, the CMA also plans to monitor how generative AI technologies, which Google is increasingly embedding into search, may further entrench the company’s position.
For now, the Gemini AI Assistant will not be covered under the proposed designation, but the regulator says this could change depending on how the technology evolves and is adopted.
This isn’t the only front on which Google faces such in the UK. The CMA is also examining its control over the Android mobile operating system in a separate probe, which could lead to an additional SMS designation targeting mobile software.
Globally, Google’s regulatory issues are increasing. It’s been hit with landmark antitrust cases in the United States, and in the EU it faces accusations of violating digital platform rules.
The CMA is currently collecting input from industry stakeholders. Its final decision is expected by 13 October 2025.
