Google may soon be required to make changes in the UK to ensure consumers have greater freedom to choose their preferred search engine, following a landmark move by the Competition and Markets Authority (CMA).
The CMA announced on Thursday that it has designated Google with “strategic market status” (SMS) under new digital competition laws that took effect in January. While the decision does not imply any wrongdoing, it gives the regulator enhanced powers to impose “proportionate, targeted interventions” aimed at promoting fair competition in the digital marketplace.
The regulator said it plans to launch a consultation in late 2025 on what specific measures could be implemented. These could include the introduction of “choice screens” allowing users to select from alternative search engines, increased transparency in how search rankings are determined, and a stronger complaints mechanism for businesses dissatisfied with their listings.
Will Hayter, the CMA’s digital markets director, said Google’s influence over online search in the UK is “undeniable,” with more than 90 percent of searches conducted on its platform. “Having taken into account the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status,” he said.
The watchdog’s earlier “roadmap” outlined potential actions to curb Google’s market dominance, including new rules on how publishers’ content is used and fairer principles for ranking websites in search results.
In response, Google warned that excessive regulation could stifle innovation and slow down product development, particularly as artificial intelligence drives a new wave of technological change. “UK businesses and consumers have been among the first to benefit from Google’s innovations, often months before their European counterparts,” said Oliver Bethell, Google’s head of competition. “Many of the proposed interventions would inhibit UK innovation and growth, potentially delaying new product launches.”
Consumer advocates, however, have welcomed the CMA’s decision. Rocio Concha, policy director at consumer group Which?, called it “an important step” towards addressing harmful market dominance. “Online search is evolving as generative AI tools become more widely used, but the CMA must still act to tackle the harmful dominance Google has now,” she said.
The UK action comes as regulators worldwide intensify scrutiny of Google’s market power. In the United States, the Supreme Court this week allowed an order mandating changes to the Google Play Store to stand, while in Europe, the tech giant was fined €2.95 billion (£2.5 billion) in September for alleged abuse of dominance in online advertising.
With the UK’s latest move, Google faces another wave of regulatory pressure that could reshape how it operates in one of its most important markets.
