Britain’s Competition and Markets Authority (CMA) is preparing to take landmark action against Google that could significantly reshape how the tech giant operates in the UK, with a strong focus on boosting consumer choice and market fairness.
Under a proposed designation of “strategic market status” (SMS), the CMA would gain powers to regulate Google’s search business, which commands over 90 percent of search queries in the country. The market size of the online search engine industry in the UK was £4.9 billion in 2024, according to IBISWorld. In 2024, Google’s search business revenue globally was approximately $348.16 billion, according to Statista.
Concerns raised include Google’s data advantage, high advertising costs, lack of transparency in search rankings, and limited control for publishers over how their content is used. The CMA also flagged that default agreements with device makers and lack of data portability hinder competition and innovation.
If the designation is confirmed in October, early priority actions would include: introducing choice screens for users to select alternative search engines, ensuring fairer ranking practices, improving transparency for content creators, and enabling users to transfer search data to competitors. The CMA also plans to address more complex issues starting in 2026, such as Google’s treatment of publishers and rival search services.
While AI-powered assistants are emerging, Google still dominates search, even as it integrates generative AI features like AI Overviews. These features would fall under the CMA’s oversight, though standalone assistants like Gemini would not — yet.
CMA Chief Executive Sarah Cardell in a statement said the proposed measures are “targeted and proportionate,” designed to give UK consumers and businesses greater choice and control while encouraging innovation across the tech sector. The move reflects the CMA’s strategy to apply its expanded post-Brexit regulatory powers to rein in dominant tech platforms without deterring investment and growth.
Google, however, has pushed back, warning that overly broad or punitive regulation could hinder its ability to develop and launch new features in the UK, Reuters news report said. The company emphasized that the SMS designation does not imply anti-competitive behavior but expressed concern about the potential impact on key parts of its business, especially as it rolls out new generative AI features like AI Overviews. While the CMA said these AI features would fall under the new rules, Google’s Gemini AI assistant would not — though that may change as usage evolves.
Looking ahead, the CMA plans further action starting in 2026, including reviews of Google’s treatment of rival search services and advertising transparency. A separate investigation is also examining Google’s Android operating system, which could lead to another SMS designation.
In summary, the CMA’s proposed actions mark a major shift in how digital markets are regulated in the UK. If implemented, Google would face new requirements aimed at improving fairness, boosting competition, and most importantly, offering consumers more real choice in how they interact with online services.
TelecomLead.com News Desk
