The UK鈥檚 competition watchdog has proposed designating Google with 鈥榮trategic market status鈥 after an investigation earlier this year revealed market issues.
The Competition and Markets Authority (CMA) said it had 鈥渉eard concerns鈥 that Google鈥檚 search advertising costs are higher 鈥渢han would be expected鈥 in a 鈥渕ore competitive market鈥.
It will also look into the transparency and fairness of how the search engine ranks results, as well as how publishers鈥 content 鈥渋s used in Google鈥檚 search and AI-generated responses鈥.
The Silicon Valley giant鈥檚 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.
鈥淕oogle is the world鈥檚 leading search tool and plays an important role in all our lives鈥 [its] search has delivered tremendous benefits 鈥 but our investigation so far suggests there are ways to make these markets more open, competitive and innovative鈥, said CMA chief Sarah Cardell.
What would strategic market status mean for Google?
The Competition and Markets Authority (CMA) has proposed designating Google with 鈥榮trategic market status鈥 (SMS) in general search and search advertising.
SMS status allows the CMS to impose 鈥渃onduct requirements鈥 on designated companies, or introduce 鈥減ro-competition interventions to achieve positive outcomes for UK consumers and businesses鈥.
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鈥檚 activities in search and search advertising.
The results of that investigation has directly led to June 24鈥檚 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 鈥渋mportant milestone鈥 in the CMA鈥檚 implementation of the Digital Markets Competition Regime.
鈥淭hese targeted and proportionate actions [if Google is designated] would give UK businesses and consumers more choice and control over how they interact with Google鈥檚 search services 鈥 as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy,鈥 Cardell said.
A decision on SMS designation will be made by October 13, 2026.