UK’s competition watchdog sets its sights on Google search
The UK’s competition watchdog has proposed designating Google with ‘strategic market status’ after an investigation earlier this year revealed market issues.
The Competition and Markets Authority (CMA) said it had “heard concerns” that Google’s search advertising costs are higher “than would be expected” in a “more competitive market”.
It will also look into the transparency and fairness of how the search engine ranks results, as well as how publishers’ content “is used in Google’s search and AI-generated responses”.
The Silicon Valley giant’s search tool accounts for more than 90 per cent on all general search enquiries in the UK, with more than 200,000 business relying on advertising revenue from it.
“Google is the world’s leading search tool and plays an important role in all our lives… [its] search has delivered tremendous benefits – but our investigation so far suggests there are ways to make these markets more open, competitive and innovative”, said CMA chief Sarah Cardell.
What would strategic market status mean for Google?
The Competition and Markets Authority (CMA) has proposed designating Google with ‘strategic market status’ (SMS) in general search and search advertising.
SMS status allows the CMS to impose “conduct requirements” on designated companies, or introduce “pro-competition interventions to achieve positive outcomes for UK consumers and businesses”.
The status, which can only apply to large tech companies, is a tool from the Digital Markets, Competition and Consumers Act, 2024.
The first investigation under the digital markets competition regime was also related to Google, focused on Google’s activities in search and search advertising.
The results of that investigation has directly led to June 24’s investigation.
If Google were to be designated, the watchdog could require choice screens to users to access different search providers, or look into fair ranking principles for businesses on Google search and encourage transparency for publishers whose content appears in search results.
Cardell said the investigation marks an “important milestone” in the CMA’s implementation of the Digital Markets Competition Regime.
“These targeted and proportionate actions [if Google is designated] would give UK businesses and consumers more choice and control over how they interact with Google’s search services – as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy,” Cardell said.
A decision on SMS designation will be made by October 13, 2026.