Britain’s Competition and Markets Authority (CMA) has officially designated Google as holding “strategic market status” (SMS) in the online search sector, marking the first use of new regulatory powers aimed at curbing the dominance of Big Tech.
The designation, announced Friday, allows the CMA to impose “proportionate, targeted” interventions on the Alphabet-owned tech giant, though it does not constitute a finding of wrongdoing nor introduce immediate obligations.
“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,” said Will Hayter, Executive Director for Digital Markets at the CMA.
The move follows mounting scrutiny of Google’s market influence, both in the UK and abroad. In the United States, the Federal Trade Commission recently launched an investigation into Google and Amazon’s search advertising practices, while the Department of Justice is seeking to force Google to divest parts of its advertising technology business.
Responding to the UK designation, Google’s Senior Director for Competition, Oliver Bethell, warned that proposed interventions could hinder 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,” Bethell said.
Google, which last month pledged a £5 billion ($6.65 billion) investment in the UK, expressed hope that any regulatory outcomes would align with the CMA’s stated goal of supporting UK consumers and businesses.
The CMA now has the authority to enforce changes, including fairer search result rankings and increased visibility for alternative search engines. It also has the power to levy fines for non-compliance.
While Google’s Gemini AI assistant is currently excluded from the scope of the designation, the CMA noted that other AI-driven features—such as AI Overviews and AI Mode—are included. The regulator said it would continue to monitor developments in the AI search space.
This landmark designation signals a new era of digital market regulation in the UK, with broader implications for how tech giants operate across Europe and beyond.
