The UK’s Competition and Market Authority (CMA) now has the legal power to force changes upon Google’s search business, following its decision to designate the tech firm with “strategic market status.” This landmark move, the first under the UK’s new digital laws, ushers in a new era of tighter regulation for the search giant due to its entrenched market dominance.
The core of the decision rests on Google’s immense influence; its platform is responsible for over 90% of searches in the UK. This dominance led the CMA to conclude that Google holds a strategic position requiring a bespoke regulatory regime. The new “strategic market status” (SMS) empowers the watchdog to proactively implement rules to foster a more competitive digital landscape.
Among the potential changes the CMA is considering are measures designed to give consumers more options. This includes a “choice screen,” which would allow users to easily pick a search engine other than Google. The CMA has explicitly noted that this could include innovative AI-powered competitors. The regulator is also examining how to ensure fairer search rankings and give publishers more say over how their content is utilized, especially by Google’s AI tools.
Google has cautioned that these regulatory interventions could have unintended negative consequences. A company official expressed concern that the moves could “inhibit UK innovation,” potentially delaying the availability of new AI-driven features for British consumers. This perspective is countered by legal experts who view the CMA’s action as a crucial step to align the UK with international efforts to rein in Google’s market power.
The CMA has clarified that no immediate changes will be enforced, as the designation is the precursor to a formal consultation on potential remedies, expected to begin this year. The decision sets a powerful precedent for how the UK will use the Digital Markets, Competition and Consumers Act 2024, with the mobile ecosystems of Apple and Google next in the regulator’s sights.