Google may soon face new regulatory constraints in the UK after the Competition and Markets Authority (CMA) formally designated the tech giant with “strategic market status” for its dominant position in online search and search advertising.
The designation — the first of its kind under the UK’s new Digital Markets, Competition and Consumers Act — gives the CMA enhanced powers to impose conduct requirements on large tech firms that hold “substantial and entrenched market power.” The move could eventually lead to rules forcing Google to alter how its search engine operates, including potentially offering users greater choice over which search engine they use.
According to the CMA, Google controls more than 90% of all internet searches in the UK and provides search advertising services to over 200,000 British businesses. Regulators say this level of dominance limits competition and may restrict innovation across the digital economy.
Under the new rules, the CMA can introduce “targeted interventions” to promote fairer competition and improve options for consumers and advertisers. While no immediate actions have been announced, the regulator said it plans to consult on possible measures later this year.
Will Hayter, Executive Director for Digital Markets at the CMA, said the move was aimed at supporting long-term economic growth. “By promoting competition in digital markets like search and search advertising, we can unlock opportunities for businesses big and small to innovate and grow, driving investment across the UK economy,” he said.
The designation covers Google Search and related AI-enabled features such as “AI Mode” and “AI Overviews,” but excludes the company’s Gemini AI assistant. The CMA stressed that the decision does not imply wrongdoing, only that Google meets the legal criteria for having strategic market influence.
In June, the regulator said it was examining whether Google’s control over how online publishers’ content is displayed could be loosened. Possible reforms under consideration include requiring Google to make it easier for users to switch search providers.
Google, owned by parent company Alphabet, warned that new restrictions could have negative economic consequences. Oliver Bethell, the firm’s senior director for competition, said: “Many of the ideas for interventions raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation. Others could harm businesses by forcing price increases for customers.”
Consumer advocacy group Which? welcomed the CMA’s decision. Rocio Concha, the organisation’s director of policy and advocacy, described the move as “an important step to improving competition in digital markets.”
She added, “Online search is evolving as generative AI tools become more widely used, but the CMA must still act to tackle the harmful dominance Google holds now and promote fair competition between emerging AI-driven search platforms.”
