UK CMA designates Google as Strategic Market Status for Search — What it means
The UK Competition and Markets Authority (CMA) has officially designated Google with Strategic Market Status (SMS) under the UK’s new digital markets competition regime (in force 1 Jan 2025). The designation applies to Google’s general Search and search advertising services and allows the CMA to propose interventions to promote competition and protect UK users and businesses.
Key points
- The CMA found Google has “substantial and entrenched market power and a position of strategic significance” for general Search and search ads.
- More than 90% of UK searches happen on Google’s platform, per the CMA.
- The designation includes Google’s AI Overviews and AI Mode features, but not (for now) the Gemini AI assistant.
- The CMA may consult on possible interventions later this year; the designation does not itself mean Google broke the law but enables regulatory action to ensure fair competition.
Responses
Google warned that many proposed interventions could “inhibit UK innovation and growth,” potentially slowing product launches during a period of rapid AI development. The company also pointed to costs experienced in other jurisdictions—referring to the EU’s Digital Markets Act (DMA), which designated Google as a gatekeeper in 2023.
Sources
- CMA: “CMA confirms Google has strategic market status in search services” (press release)
- Reputable coverage: Google strategic market status confirmed (Alliance News/Morningstar)
What to watch next
The CMA has launched its SMS investigation and plans consultations on interventions later this year. Any new rules could affect how Search and related AI features operate in the UK, and businesses that rely on Google’s services should monitor developments closely.
Discussion
Do you think stricter rules will make Search fairer and better for users, or will they slow innovation and raise costs? Share your view in the comments below.