The UK’s Competition and Markets Authority (CMA) has announced it is consulting on whether to designate Google with “strategic market status” (SMS) under the country’s new Digital Markets, Competition and Consumers Act.
The move could lead to substantial changes in how Google operates its search services in the United Kingdom.
The proposed designation, part of a broader legal framework that came into effect this year, targets companies with entrenched dominance in specific digital markets. While the CMA is not accusing Google of anti-competitive behavior at this stage, the regulator has outlined a preliminary roadmap of potential remedies aimed at enhancing competition and user choice.
If Google receives the SMS designation when the CMA concludes its investigation in October, the tech company could be required to implement a series of changes, including:
Introducing “choice screens” that allow users to select alternative search engines
Ensuring non-discriminatory and transparent search rankings
Providing publishers with greater control over how their content is used in search results, including for AI-generated responses
Enabling portability of user data to foster innovation and support rival services
The CMA said these targeted interventions aim to ensure “open, competitive and innovative” digital markets in the UK, particularly in light of Google’s overwhelming share of more than 90% in both search traffic and ad revenue.
Google has expressed concern over the CMA’s approach. In a statement, Oliver Bethell, the company’s senior director for competition, said the proposals could carry “significant implications for businesses and consumers” in the UK. While reiterating that the SMS label does not imply wrongdoing, Bethell added:
“The scope of the CMA’s considerations remains broad and unfocused.”
The company also warned that regulations could slow down the rollout of new features in the UK, a market that has historically received early access to Google innovations.
The CMA’s consultation has drawn responses from a wide range of businesses and trade groups. Some, such as adult retailers LoveHoney and Ann Summers, criticized the impact of Google’s SafeSearch filter on product visibility, while airlines and hospitality providers raised concerns about indirect effects seen in similar regulatory actions abroad.
EasyJet, for instance, pointed to changes mandated by the EU’s Digital Markets Act (DMA), which shifted user traffic from airline websites to third-party aggregators—sometimes leading to misrepresented pricing and reduced direct bookings.
The News Media Association welcomed the CMA’s scrutiny, highlighting the importance of greater transparency around how Google uses publishers’ content—especially in new AI-powered services like Google’s AI Overviews. Concerns have also been raised globally about tech firms using journalistic content to train AI models without compensation.
The UK joins several international regulators, including the European Union, Japan, Australia, and the United States, in examining the influence of major tech platforms. Last year, a US judge ruled that Google operated an illegal monopoly in digital search, while EU authorities have levied multiple fines related to the company’s search and advertising businesses.
Despite the mounting oversight, experts note that addressing dominance in digital markets remains complex. As with previous efforts elsewhere, some measures could result in unintended consequences for consumers or shift benefits from one sector to another without a net improvement in competition.
Still, the CMA’s chief executive Sarah Cardell emphasized that the agency’s proposals are designed to be “targeted and proportionate,” aiming to give UK users more control and foster a fairer environment for digital services.
The public consultation will continue until October, when a final decision on Google’s designation and any required remedies is expected.
With input from the Financial Times, CNBC, and BBC.
