Google is now under tighter regulatory control in the United Kingdom after the nation’s competition watchdog assigned it a special “strategic market status,” a move that could force a significant shake-up of its dominant search business. The Competition and Market Authority (CMA) announced the designation, leveraging new digital laws to gain the power to order changes to how Google operates its search and advertising services.
The designation is a formal recognition of Google’s substantial market power, underpinned by its control of over 90% of UK searches. According to the CMA, this strategic position requires a dedicated regulatory framework to prevent market distortions and foster a more competitive environment. This is the first time a tech company has been given this status in the UK.
As a result, Google may be required to implement several changes proposed by the regulator. A key idea under consideration is the introduction of “choice screens,” which would present users with a selection of search engines, potentially including AI-centric services like ChatGPT and Perplexity. The CMA has also flagged the need for fair search result rankings and greater control for publishers over their content, including its use in Google’s AI-generated summaries.
Google has pushed back against the potential interventions, with its senior director for competition stating that many of the proposals could “inhibit UK innovation and growth.” The company fears that regulatory friction could slow the introduction of new AI-powered services to British users. This contrasts with the view of competition law experts, who argue the UK is rightfully catching up with the US and EU in addressing Google’s long-standing monopoly.
The CMA has stressed that this initial step is not a finding of fault but the start of a process. A public consultation on specific remedies will be launched later this year. This action against Google is a landmark application of the Digital Markets, Competition and Consumers Act 2024, a new law that is also being used to scrutinize the mobile ecosystems of both Apple and Google.