LONDON – The UK’s Competition and Markets Authority (CMA) is taking steps to address Google’s stronghold on the country’s search market. On 24 June 2025, the CMA proposed giving Google “Strategic Market Status” (SMS) under the new Digital Markets, Competition and Consumers Act (DMCCA).
This marks the first significant move from the CMA since gaining extra powers to oversee digital markets. Google handles more than 90% of general search queries in the UK, so this move could change how businesses and consumers use the web’s main search tool.
In its detailed plan, the CMA signals a tougher approach towards the biggest tech companies. Google, which is part of Alphabet, is central to the UK’s digital economy. Over 200,000 local businesses depend on Google’s search ads to reach customers.
According to TechCrunch, the regulator’s plan could require Google to offer users more search engine options and fairer results for businesses. These steps are meant to boost competition and give people more choice, breaking the long-standing monopoly of one company.
There will be a consultation running until February 3, with a final decision on Google’s SMS status set for 13 October 2025.
Digital Markets, Competition and Consumers Act
The DMCCA, which came into effect on 1 January 2025, is the biggest update to UK competition and consumer law in over ten years. It was passed in May 2024, just before the last general election. The law gives the CMA stronger tools to monitor digital markets, review mergers, and uphold consumer rights.
This new framework lets the CMA act before anti-competitive problems cause harm, a faster approach than older rules. While it is similar in some ways to the EU’s Digital Markets Act, the UK version is designed to be more flexible and to fit the UK’s needs.
To receive SMS status under the DMCCA, a company must have clear and lasting market power, play a major role in a digital sector, and have a turnover above £25 billion worldwide or £1 billion in the UK. Google’s dominance in search makes it an obvious candidate.
The CMA started its review on 14 January 2025, focusing on whether Google’s control over search and search advertising harms competition and innovation. The regulator is also looking into Google’s and Apple’s mobile systems, widening the scope of its investigations.
For most UK internet users, Google is the main way to find information online, with people running between five and ten searches each day. Businesses of all sizes use Google to connect with customers, with search ads making up a key part of their marketing.
Google Delivers Many Benefits
Still, the CMA has raised issues about barriers for rival search engines, Google’s use of personal data without clear consent, and the terms it sets for publishers whose content appears in search results. CMA Chief Executive Sarah Cardell pointed out that while Google has delivered many benefits, there are ways to make these markets more open, competitive and innovative.
If these changes go ahead, how Google operates in the UK could shift. The CMA’s outline includes giving users a choice of search engines, making search rankings fairer, and making it easier for people to move their data between services.
Publishers may gain better insight and control over how their content appears, especially in Google’s AI-powered features like AI Overviews. These plans focus on helping smaller competitors and making sure businesses get a fair deal. TechCrunch has suggested that these changes could reduce Google’s long-running control over the market, opening opportunities for other firms.
Google has reacted with caution, describing the CMA’s proposals as “broad and unfocused” but has said it will work with the regulator. Oliver Bethell, Google’s senior competition director, has warned that these measures could impact both businesses and consumers in the UK by reducing access to Google’s features.
UK Following EU’s Approach
Google has faced similar investigations in other countries and was hit with a €2.4 billion fine from the EU for favouring its Shopping service, a decision upheld in 2024. Companies like EasyJet and LoveHoney have also criticised Google, raising concerns from driving traffic to intermediaries to blocking content through SafeSearch.
The CMA’s actions are part of a global trend of regulating large tech companies. Its new powers allow for more tailored rules than the EU’s approach, but challenges remain.
The CMA must balance its goals with the Labour government’s focus on growing the economy, especially in areas like AI and cloud computing, where tech firms invest heavily. Political issues, such as possible US tariffs under President Trump, could also affect how these rules are put into practice.
Over the next few months, the CMA will consult with advertisers, publishers and user groups. The outcome will shape how digital markets are regulated in the UK. With a deadline of 13 October 2025, the CMA’s decision could change how Google runs its UK business and help create a more open and competitive online environment.
Sources: GOV.UK, TechCrunch
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