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The UK’s antitrust watchdog has officially designated Google as having “strategic market status” for its search and search advertising services, setting the stage for significant new restrictions on how the tech giant operates in Britain. The Competition and Markets Authority (CMA) confirmed Google’s dominant position after a months-long investigation, finding the company controls over 90% of internet searches in the UK market.
What Strategic Market Status Means
The designation under Britain’s new digital markets competition regime doesn’t accuse Google of illegal behavior but recognizes its “substantial and entrenched market power” in search services. This formal status gives the CMA authority to impose targeted conduct requirements aimed at fostering competition and protecting consumers.
Google has objected to the classification, arguing in a statement that its UK operations have benefited the country through early feature releases and significant economic contributions. The company maintains that consumers choose Google because it provides the best services, not because they lack alternatives.
Regulatory Timeline and Potential Measures
The CMA plans to begin consultations on possible interventions later this year, with initial measures likely expanding on solutions Google has implemented elsewhere. According to the regulator’s timeline, the first set of requirements could include:
- Enhanced “choice screens” that suggest Google alternatives to users
- Greater publisher control over how their data appears in search results
- Increased transparency in search advertising practices
More comprehensive measures requiring new actions from Google are expected by the first half of 2026, giving the company time to adapt its operations to the new regulatory framework.
AI’s Complicated Role in Search Dominance
While Google has argued that the rise of generative AI creates robust competition in search, UK regulators have drawn careful boundaries around what falls under the strategic market status designation. The CMA specifically excluded Google’s Gemini AI assistant from the current scope but included AI features directly connected to search, such as AI Overviews and AI Mode.
This distinction comes as Google faces similar arguments in US antitrust trials, where the company claims AI competitors like ChatGPT demonstrate the search market remains competitive. However, as noted in Reuters’ coverage, regulators appear skeptical that emerging AI services currently threaten Google’s search dominance.
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Broader European Regulatory Pressure
The UK action follows increasing regulatory scrutiny across Europe, where Google faces similar designations under the EU’s Digital Markets Act. The European Commission has labeled Google a “gatekeeper” alongside Apple and Meta, requiring them to open their platforms to more competition.
According to Financial Times reporting, Google has called for the DMA to be “reset,” arguing the regulations harm innovation and European businesses. The company’s response to the UK designation echoes these concerns, suggesting coordinated regulatory approaches across the continent.
The CMA’s move represents the first major application of Britain’s new digital competition powers since the regime took effect earlier this year. As the regulator told the BBC, the focus remains on ensuring fair competition while recognizing the benefits Google brings to UK consumers and businesses.
With similar actions unfolding in the United States and European Union, Google now faces coordinated global pressure to change how it operates its most profitable services—setting the stage for potentially fundamental shifts in how users discover information online.
