On Tuesday, Britain’s competition regulator proposed steps to address Google’s dominance in online search, while the U.S. tech giant cautioned that “punitive regulations” might hinder economic growth in the UK.
The Competition and Markets Authority (CMA) announced plans to label Google as having “strategic market status,” which would place it under specific obligations outlined in new UK regulations.
This mirrors the European Union’s Digital Markets Act, a similar law that allows for substantial financial penalties for tech giants.
CMA Investigation Targets Google’s Search Market Power and Its Impact on Users and Businesses
In January, the CMA launched a probe into Google’s dominant role in the search engine market and its effects on both consumers and businesses.
The investigation follows the rollout of the UK’s Digital Markets Competition Regime in 2025, which the CMA stated on Tuesday could “help unlock opportunities for innovation and growth.”
However, Google’s competition spokesperson, Oliver Bethell, cautioned that the CMA’s latest update—coming ahead of a final decision expected in October—“could have significant implications for businesses and consumers in the UK.”
“The positive impact of Google Search on the UK is clear. Our tools and services generate billions of pounds for the UK economy each year,” said the company in a statement.
CMA chief executive Sarah Cardell acknowledged that “Google Search has provided significant benefits,” but emphasized that “there are opportunities to make these markets more open, competitive, and innovative.”
CMA Considers Reforms to Boost User Choice and Fair Competition in Search Services
The regulator announced plans to consult on possible reforms, such as “making it easy for users to choose and switch between search services—including AI assistants—by legally requiring default choice screens.”
Another suggested measure involves “ensuring Google’s search result rankings and displays are fair and unbiased.”
Bethell voiced concern that “the CMA’s review appears overly broad and lacks clear focus, with numerous potential interventions being discussed before any supporting evidence has been presented.”
The CMA highlighted that “Google Search handles over 90% of online searches in the UK.” It also pointed out that over 200,000 UK businesses depend on Google’s search advertising to connect with customers.
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