Google may have to alter how its search engine operates in the UK after being granted so-called strategic market status by the Competition and Markets Authority (CMA) for its “substantial and entrenched market power” in search and search advertising. This marks the first time the CMA has used its new powers to designate a tech firm with such status, enabling it to enforce measures if necessary to tackle the dominance of major IT companies.
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Under recently introduced digital market rules, firms with strategic market status can face conduct requirements designed to boost competition for UK businesses and provide greater choice for consumers. Google accounts for more than 90% of searches in the UK and is used by over 200,000 British businesses to reach customers. The CMA has previously indicated it may loosen Google’s control over search results and give publishers more influence over how their content appears.
Potential interventions could require Google to offer internet users the option to select an alternative search engine. However, the CMA confirmed that its designation does not apply to Google’s Gemini AI assistant, though other AI-based search features, such as AI Mode and AI Overviews, are included. The authority stressed that the designation is not a finding of wrongdoing and does not impose immediate requirements, but it plans to consult later this year on proportionate, targeted measures.
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The move has drawn mixed responses. Will Hayter, executive director for digital markets at the CMA, said the step will “unlock opportunities for businesses big and small” and support innovation and growth across the UK economy. Google warned that interventions could hinder innovation and growth, potentially raising prices for consumers. Meanwhile, consumer group Which? welcomed the decision as an “important step to improving competition in digital markets” and called for continued action to curb Google’s dominance as generative AI tools become more prevalent.
