UK's CMA Proposes "Strategic Market Status" for Google's Search Dominance
UK Regulator Eyes Google's Search Dominance
The UK's Competition and Markets Authority (CMA) is taking significant steps under new digital market laws to address Google's dominant position in online search services. As of today, Tuesday, June 24, 2025, the CMA has proposed designating Google's search activities with "strategic market status." This designation would grant the regulator enhanced powers to intervene and mandate changes aimed at fostering greater competition and innovation in the UK digital landscape.
Reasons for CMA Action and Google's Market Position
The CMA's investigation, which began in January, stems from concerns that Google's overwhelming market share in the UK stifles competition. Google currently accounts for over 90% of search queries in Britain. This dominance impacts not only consumers, who make an estimated five to ten searches daily, but also businesses. More than 200,000 UK businesses rely on Google's search advertising to reach customers, spending an average of £33,000 per year. The CMA suggests that increased competition could potentially lower these advertising costs. While the CMA is not currently accusing Google of anti-competitive behavior, the proposed strategic market status is based on the finding that Google holds substantial power in the market.
Proposed Changes and Potential Impact
The CMA has outlined a "roadmap" of potential changes Google could be required to implement ahead of a final decision expected by October. These proposed actions are described as "targeted and proportionate" and aim to give UK businesses and consumers more choice and control.
User Choice and Transparency
One key proposal is the introduction of "choice screens" that would allow users easier access to alternative search providers. This is similar to measures implemented in the European Union under its Digital Markets Act (DMA), although the CMA's approach is described as more targeted. The regulator also seeks greater transparency regarding how search results are ranked.
Implications for Publishers and AI
The proposed changes also address concerns from publishers regarding the use of their content in search results, particularly in emerging AI-powered features like Google's AI Overviews. News organizations have voiced concerns about their content being used to train AI models without consent or compensation. The CMA's intervention could lead to increased transparency and control for publishers over how their content appears and is utilized by Google, including in AI contexts. The proposed designation would cover AI-based search features, with the status of Google's Gemini AI Assistant itself under review as AI usage evolves.
Google's Response and Concerns
Google's parent company, Alphabet, has stated it will work constructively with the CMA but described the regulator's suggestions as "broad and unfocused." Google warned that "punitive regulation" could potentially hinder the introduction of new features and services in the UK. While acknowledging that strategic market status doesn't imply anti-competitive behavior, Google believes the announcement presents "clear challenges" to its UK business operations. They argue that proportionate, evidence-based regulation is essential to prevent the CMA's roadmap from becoming a "roadblock to growth."
Broader Regulatory Context
The CMA's action is part of a broader global trend of increased regulatory scrutiny on major tech companies. Google has faced similar investigations and enforcement actions in other jurisdictions. In the US, a judge ruled last August that Google operated an illegal search monopoly. In the EU, Google received a €2.4 billion fine, upheld last year, for allegedly favoring its own shopping comparison service in search results. The UK's approach under its new Digital Markets Competition Regime aims to balance curbing the power of tech giants with fostering economic growth and innovation post-Brexit. The CMA also has another investigation underway targeting Google and Apple regarding mobile operating systems. The regulator has the power to impose fines for non-compliance with its directives.
