CMA designates Google Search with “strategic market status”

The UK’s Competition and Markets Authority (CMA) formally designated Google with strategic market status (SMS) in general search and search advertising — giving regulators new powers to shape how Google operates in these sectors.

What’s included. The designation covers Google’s general search and search advertising services — including AI-powered features such as AI Overviews and AI Mode — but excludes the Gemini AI assistant and certain news and syndication products.

The CMA emphasized that the designation is not a finding of wrongdoing but enables “proportionate, targeted interventions” to ensure fair treatment for consumers and competitors.

Why we care. The move marks the first major application of the UK’s new Digital Markets Competition Regime, introduced in January 2025 to rein in tech giants’ dominance and promote fairer competition. It also gives UK regulators new power to shape how Google Search and its ad systems operate — potentially impacting visibility, targeting, and pricing.

Future interventions could alter how search ads are displayed or ranked, how data is shared, and how ad auctions work. In short, the rules governing how advertisers reach UK consumers through Google may soon change, affecting both performance and cost.

What’s next. The CMA will begin consulting on potential interventions later this year, which could include transparency obligations, data-sharing requirements, or limits on how Google prioritizes content and ads in search results.

The industry context: The UK joins regulators in the U.S., EU, and Japan in tightening scrutiny of digital gatekeepers. Similar efforts abroad have led to stricter interoperability and data-use rules for dominant platforms.

Google’s response: Google acknowledged the designation, saying it expects new regulations on how Search operates but cautioned against “unduly onerous restrictions” that could “slow product launches” and harm innovation.

The company noted that Google Search contributed £118 billion to the UK economy in 2023 and argued that past regulatory overreach in other markets has cost businesses an estimated €114 billion.

The bottom line: The CMA’s decision signals a new era of oversight for Big Tech in the UK. While immediate changes are unlikely, advertisers, publishers, and consumers could soon see a more regulated — and possibly more competitive — search ecosystem.