On October 10, 2025, the United Kingdom’s Competition and Markets Authority (CMA) officially designated Google with strategic market status (SMS) in the realms of general search and search advertising services. This landmark decision, the first under the UK’s new digital markets competition regime initiated on January 1, 2025, empowers the CMA to implement targeted measures aimed at fostering fair competition within the digital marketplace.
Background and Investigation
The CMA’s decision follows a comprehensive nine-month investigation launched in January 2025. This probe was initiated to assess Google’s dominance in the search sector and its implications for consumers and businesses, including advertisers, news publishers, and rival search engines. The investigation aimed to determine whether Google’s practices were creating barriers to entry and stifling innovation in the search industry.
During the investigation, the CMA engaged with over 80 stakeholders and conducted an in-depth analysis of the market dynamics. The findings revealed that Google holds a substantial and entrenched market power, with more than 90% of all online searches in the UK conducted through its platform. This dominance has remained largely unchallenged for over fifteen years, with competitors like Bing capturing less than 5% of the market share.
Scope of the Designation
The SMS designation encompasses several facets of Google’s operations:
– General Search Services: This includes all information returned through Google’s search infrastructure, such as search results pages, specialized search units, videos, maps, and the Top Stories carousel.
– Search Advertising Services: Platforms like Google Ads and Search Ads 360, when they provide search advertising, fall under this designation.
– AI-Enabled Search Features: Innovations like AI Overviews and AI Mode are included, reflecting the CMA’s recognition of the evolving nature of search technologies.
– Discover Feed and News Products: Features like the Discover feed and the Top Stories and News tab are within scope. However, the separate Google News app and website are excluded from this designation.
Notably, Google’s Gemini AI assistant is currently excluded from the SMS designation. The CMA has stated that it will keep this position under review, given the rapid developments in the AI search market.
Implications of the Designation
While the SMS designation does not imply any immediate wrongdoing or introduce instant requirements, it grants the CMA the authority to consider proportionate and targeted interventions to ensure that general search services are open to effective competition. Potential measures that the CMA may explore include:
– Choice Screens: Implementing mechanisms that allow users to select their preferred search engine, thereby promoting competition.
– Data Portability: Facilitating systems that enable users to transfer their data, such as search history, to alternative services, thereby supporting innovation among emerging competitors.
– Fair Ranking Practices: Ensuring that search results are presented in a non-discriminatory manner, preventing self-preferencing and promoting a level playing field for all content providers.
– Publisher Control: Providing publishers with greater control over how their content is used in Google’s AI services, ensuring proper attribution and fair compensation.
The CMA has indicated that it will begin consulting on possible interventions later in the year, with the aim of implementing measures that promote fair competition and benefit consumers and businesses alike.
Google’s Response
In response to the CMA’s designation, Google has expressed concerns that potential interventions could hinder innovation and growth within the UK. The company highlighted that the UK has historically benefited from early access to Google’s innovations, contributing significantly to the economy. Google cautioned that overly restrictive regulations could slow product launches and negatively impact businesses, potentially leading to higher prices for consumers.
Google has pledged to engage constructively with the CMA to ensure that any new rules benefit all types of websites and continue to provide UK users with access to helpful and cutting-edge services.
Broader Context
The UK’s move to designate Google with SMS aligns with global efforts to regulate major tech companies and promote fair competition in digital markets. Similar actions have been observed in jurisdictions like the United States, the European Union, and Japan, reflecting a growing consensus on the need to address the dominance of tech giants in critical digital services.
The CMA’s decision marks a significant step in the UK’s approach to digital market regulation, setting a precedent for future actions aimed at ensuring that digital markets remain competitive, innovative, and beneficial for consumers and businesses alike.
Conclusion
The designation of Google with strategic market status by the UK’s Competition and Markets Authority represents a pivotal moment in the regulation of digital markets. While it does not imply immediate changes, it opens the door for targeted interventions designed to promote fair competition and innovation. As the CMA moves forward with consultations and potential measures, the outcomes will be closely watched by stakeholders within the UK and globally, as they may influence the future landscape of digital market regulation.
