Britain’s competition authority is considering measures that could lead Google to adopt a more equitable ranking of businesses in its search results, as well as provide alternative services for consumers. This marks a significant step in utilizing expanded powers to regulate major technology firms.
The Competition and Markets Authority (CMA) announced on Tuesday its intention to grant “strategic market status” to Google, a subsidiary of Alphabet. This designation would empower the CMA to implement changes in search services with the goal of fostering innovation and stimulating economic growth.
Should this designation be finalized in October, Google may be required to improve transparency for content publishers, streamline access to competing search platforms—including AI-based assistants—and enhance data portability options for rival services.
In response, Google cautioned that stringent regulations could hinder its ability to introduce new features and services in the UK, characterizing the CMA’s scope of considerations as “broad and unfocused.” Oliver Bethell, Google’s senior director for competition, stressed the necessity of “proportionate, evidence-based regulation” to avoid the CMA’s strategy from becoming an obstacle to the UK’s growth.
According to CMA Chief Executive Sarah Cardell, Google holds a commanding share of over 90 percent of search inquiries in Britain. While she acknowledged the significant advantages that Google’s services provide, she emphasized the regulator’s mission to enhance market competitiveness and innovation.
“These targeted and proportionate actions would offer UK businesses and consumers greater choice and control regarding their interactions with Google’s search services, ultimately unlocking more opportunities for innovation throughout the UK tech landscape and economy,” Cardell stated.
The CMA highlighted that millions of individuals in Britain rely on Google for internet access, making it essential for over 200,000 businesses that utilize Google search advertising to connect with their customers.
Since gaining international recognition following Brexit, the CMA aims to utilize its enhanced authority to rein in the influence of tech giants like Google, Apple, Meta, and Microsoft, while also encouraging investment and economic growth.
The CMA’s approach stands in contrast to the EU’s extensive enforcement of digital regulations, reflecting Britain’s aims to balance the regulation of tech dominance with the promotion of post-Brexit economic development.
New Regulatory Powers
Cardell remarked that the CMA has laid out a potential roadmap for changes that Google might need to implement prior to the final decision in October.
While Google indicated that the proposed SMS designation does not suggest anti-competitive behavior, it acknowledged that it presents challenges for vital aspects of its operations in the UK.
The rise of generative AI technology has the potential to disrupt Google’s stronghold in the search market. The CMA noted that Google is already integrating generative AI features, such as AI Overviews, into its search offerings and is developing its own AI assistant, Gemini.
While the proposal would encompass AI-based search features, it specifically excludes the Gemini AI Assistant from immediate consideration, although its status may be reassessed based on user adoption rates.
The CMA also outlined intentions to address more intricate issues starting in 2026, which include scrutiny of Google’s treatment of competing specialized search firms, as well as the transparency and control surrounding search advertising.
The regulator is currently conducting a second investigation under its new powers, which focuses on mobile operating systems and includes both Google and Apple. This inquiry may lead to further designations concerning Google’s Android operating system.
The CMA possesses the authority to impose penalties for non-compliance and has direct enforcement capabilities.
Google has faced increasing regulatory oversight in both the United States and the European Union, encompassing its practices in search, advertising, AI, and digital platforms.
In the past year, it has been found to monopolize the search and online advertising sectors in two significant rulings in the US, and in March, it was charged by the European Commission for violations of critical EU digital regulations.
© Thomson Reuters 2025
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