CMA's Push for Strategic Market Status
Britain's Competition and Markets Authority (CMA) has taken a significant step toward regulating Google's dominance in the search engine market. On June 24, the CMA announced its proposal to designate Alphabet-owned Google with 'strategic market status' (SMS) under the newly enacted Digital Markets, Competition, and Consumers Act (DMCCA). This designation, if finalized, would grant the CMA greater authority to intervene in Google's search and search advertising practices to foster a more competitive digital landscape in the UK.
The CMA's investigation into Google's practices began earlier in 2025, with a focus on whether the tech giant's overwhelming market share—estimated at around 90% in the UK search market—hinders fair competition. The regulator is particularly concerned about how Google's algorithms rank search results, often prioritizing its own services or partners over competitors. A final decision on the SMS designation is expected by October 13, as the CMA continues to consult with stakeholders and gather feedback on its roadmap for intervention.
Potential Changes to Google's Search Operations
If Google is granted 'strategic market status,' the CMA could impose several measures to level the playing field. Among the proposed changes are requirements for 'non-discriminatory ranking' of search results, ensuring that businesses are not unfairly disadvantaged by Google's algorithms. Additionally, the CMA aims to compel Google to enhance transparency for publishers, especially regarding AI-generated responses that have become increasingly prominent in search results.
Another key aspect of the proposed intervention is simplifying access to rival search services. The CMA believes that Google's current practices make it challenging for alternative search engines to gain traction, stifling innovation in the sector. By enforcing easier access to competitors, the regulator hopes to encourage diversity in the market, ultimately benefiting both consumers and smaller businesses reliant on search visibility for growth.
The CMA also plans to address the impact of Google's dominance on publishers and advertisers. By potentially forcing Google to share more data and provide fairer business rankings, the regulator seeks to create an environment where economic growth and innovation can thrive without being overshadowed by a single player.
Implications for Digital Markets in the UK
The move to regulate Google's search practices marks a pivotal moment for digital markets in the UK, as it is the first major action under the DMCCA, which came into force in January 2025. This legislation empowers the CMA to tackle anti-competitive behavior in the tech industry more effectively, setting a precedent for how other tech giants might be scrutinized in the future. The outcome of this case could reshape how digital services operate, not just for Google but across the broader tech ecosystem.
Industry experts and small businesses have expressed cautious optimism about the CMA's actions. Many hope that increased competition will lead to better services and more opportunities for smaller players to reach audiences without being buried under Google's prioritized results. As the consultation process continues, the tech community and regulators alike are keenly watching how this landmark case unfolds, with potential ripple effects beyond UK borders.