UK’s CMA Targets Google Search Dominance with New ‘Strategic Market Status’ Powers
In a landmark move for digital regulation, Britain’s Competition and Markets Authority (CMA) has officially designated Google Search with “strategic market status” (SMS), unleashing new powers to scrutinize and potentially reshape the tech giant’s operations. Announced on October 10, 2025, this is the first such designation under the UK’s Digital Markets, Competition and Consumers Act, signaling a tougher stance on Big Tech amid global antitrust scrutiny.
Background: The Rise of UK’s Digital Markets Regime
The UK’s new regulatory framework, effective from January 2025, empowers the CMA to proactively intervene in digital markets where a handful of firms hold overwhelming influence. Unlike traditional antitrust probes, which react to complaints, this “ex-ante” regime allows upfront rules to foster competition and innovation. The CMA launched its investigation into Google back in January, focusing on general search and search advertising after extensive consultations.
This builds on years of tensions: Google has faced repeated CMA probes into its ad tech and Android practices, often resulting in voluntary commitments rather than fines. Now, with SMS, the regulator can impose binding obligations without lengthy court battles.
Details of the Designation
The CMA confirmed Google’s SMS in two key areas: general search services and search advertising. With over 90% of UK searches routed through its engine, Google was deemed to have “substantial and entrenched market power,” potentially stifling rivals and harming consumers through higher prices or reduced choice. The designation excludes AI tools like Gemini—for now—but covers core search functions that drive billions in ad revenue.
Under SMS, Google must now engage in a “pro-competition regime” process, where the CMA will consult on tailored interventions, such as mandating fairer access to data or limiting self-preferencing in results.
Google’s Market Dominance in the Spotlight
Google’s grip on search is unchallenged: It processes the vast majority of queries, blending organic results with paid ads in ways that critics say blur lines and favor its ecosystem. The CMA highlighted how this dominance could entrench barriers for new entrants, echoing U.S. DOJ claims in ongoing trials. In the UK, this means everyday users might see indirect impacts, like more diverse search options if changes are enforced.
Potential Implications for Google and the UK Economy
If the CMA proceeds, Google could face requirements to open up its algorithms, share ranking data, or decouple ad auctions—potentially reshaping how Brits find information online. Proponents argue this will spur innovation, benefiting startups and consumers with better, fairer services. However, enforcement could take months, with appeals possible.
Broader ripple effects? This sets a precedent for other tech probes, including ongoing SMS reviews of Apple’s app stores and Amazon’s marketplace. Globally, it aligns with EU and U.S. efforts, pressuring Google to adapt across borders.
Reactions: Google Pushes Back, Experts Cheer
Google responded cautiously, stating it would “engage constructively” with the CMA while defending its innovations as pro-competitive. “Search is constantly evolving to deliver the best experience,” a spokesperson noted, hinting at resistance to overreach.
Experts are divided: Tech advocates hail it as a “game-changer” for leveling the playing field, while skeptics warn of unintended stifling of R&D. One analyst quipped, “It’s not about breaking Google—it’s about ensuring search serves the UK, not just shareholders.”
Looking Ahead: A New Era of Tech Accountability
As the CMA’s powers flex for the first time, this Google probe marks a pivotal shift in UK antitrust enforcement. With digital markets underpinning the economy, expect more designations soon—potentially transforming how we navigate the web. For Google, it’s a call to balance dominance with openness; for regulators, a test of bold new tools. In an AI-driven future, who controls search could redefine information itself.