UK Grants Google Strategic Market Status in Online Search
Britain’s Competition and Markets Authority (CMA) has designated Google as holding “strategic market status” (SMS) in online search, marking the first major use of the UK’s new powers to regulate Big Tech dominance. The move allows the regulator to introduce “proportionate and targeted” interventions to promote competition but does not immediately impose any new rules.
CMA Moves to Rein in Market Concentration
The CMA said the designation enables it to compel the US tech giant to modify how it operates in the UK market if required. Will Hayter, the CMA’s Executive Director for Digital Markets, said: “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.”
The new status is not a finding of wrongdoing but lays the groundwork for measures that could open the market to more competition. Potential actions discussed earlier this year include ensuring fairer ranking practices and increasing consumer access to alternative search engines.
Google Pushes Back Against Potential Restrictions
In response, Google’s Senior Director for Competition, Oliver Bethell, said that some proposed interventions “would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.”
Google recently announced plans to invest £5 billion ($6.65 billion) in Britain, saying it hoped the CMA’s process would “reflect the best interests of UK consumers and businesses.”
Growing Global Scrutiny of Big Tech
Regulators worldwide are tightening oversight of major technology companies. The US Federal Trade Commission last month launched an investigation into Google and Amazon’s search advertising practices, while the US Department of Justice is pursuing legal action seeking to force Google to divest parts of its ad technology business.
The CMA’s move represents a more proactive approach, enabled by the UK’s Digital Markets, Competition and Consumers Act. The law gives the regulator direct enforcement powers, including the ability to fine companies that fail to comply with its requirements.
AI Features Under Review
While the CMA stated that Google’s Gemini AI assistant does not fall under the current designation, it will continue monitoring its development. However, other AI-powered tools such as AI Overviews and AI Mode are included within the new framework.
The regulator said it will use its powers to ensure that general search services remain “open to effective competition” as the market evolves.
with inputs from Reuters