The United Kingdom’s new era of digital regulation has begun, with Google’s search empire becoming the first entity to be targeted under powerful new legislation. The Competition and Market Authority (CMA) has officially designated Google with “strategic market status” (SMS), a classification that subjects the company to a specialized regulatory regime and gives the watchdog the ability to mandate operational changes.
This action is the first exercise of powers granted by the Digital Markets, Competition and Consumers Act 2024. The CMA justified the decision by pointing to Google’s entrenched position, controlling over 90% of the UK search market. This level of dominance, the authority concluded, means Google has a unique strategic influence that requires proactive oversight to ensure fair competition.
Looking ahead, the CMA will consult on potential “conduct requirements” for Google. These could include compelling the company to feature “choice screens” that offer users alternative search engines, including AI-native platforms like Perplexity. The regulator is also considering measures to ensure impartial search rankings and to give online publishers more control over how their articles and data are used by Google, including in its AI Overview feature.
The move has drawn different reactions from stakeholders. The CMA’s executive director for digital markets, Will Hayter, emphasized that promoting competition in search can fuel business opportunities and investment. In contrast, Google’s senior director for competition, Oliver Bethell, warned that such interventions risk slowing down product launches and hampering innovation in the UK, particularly in the burgeoning field of AI.
While the SMS designation does not imply any wrongdoing by Google and carries no immediate penalties, it signals a fundamental shift in the UK’s approach to regulating Big Tech. The decision sets a precedent for how the CMA will use its new powers, with similar investigations into the mobile platforms of Apple and Google already underway, promising further shake-ups in the digital marketplace.