Britain's Competition and Markets Authority announced today its proposal to designate Google with "strategic market status" under the country's new Digital Markets Competition Regime. The CMA's decision represents the first investigation under legislation that came into force January 1, 2025, targeting the tech giant's dominance in search and search advertising services.

CMA officials stated Google controls more than 90 percent of UK search queries, with over 200,000 businesses spending £10 billion on Google search advertising in 2024. The watchdog will make a final designation decision by October 13, 2025, following a consultation period that runs through early February.

Google responded through Oliver Bethell, senior director for competition, saying the announcement "presents clear challenges to critical areas of our business in the UK." The company committed to working "constructively" with the CMA while questioning the scope of proposed interventions.

Regulatory Actions Could Reshape UK Search Market

The CMA's roadmap outlines potential requirements including choice screens for users to select alternative search providers, fair ranking principles for businesses in search results, and increased transparency for publishers whose content appears in Google's AI-generated responses. Additional measures could mandate data portability to support innovation in new search products and services.

CNBC reported that strategic market status designation creates obligations under the Digital Markets, Competition and Consumers Act for firms holding entrenched market power. The legislation empowers regulators to impose conduct requirements and pro-competition interventions.

Search advertising costs in the UK averaged £33,000 per advertiser in 2024, according to CMA analysis. The authority believes effective competition could reduce these expenses, potentially lowering prices across the economy by amounts equivalent to £500 per household annually.

The investigation will examine whether Google uses its position to shape AI services development, potentially limiting competitive constraints from emerging "answer engines." Regulators also plan to assess Google's self-preferencing of shopping, travel, and hotel search results over rivals.

Global Antitrust Pressure Intensifies Across Multiple Jurisdictions

Google faces parallel investigations worldwide as regulators target its market dominance. Reuters reported European Union courts recently sided with antitrust regulators in upholding a €4.1 billion fine related to Android practices, while additional EU investigations continue under the Digital Markets Act.

United States authorities are pursuing their own cases, with federal judges considering remedies for Google's search monopoly. Reuters noted the Department of Justice seeks a 10-year regime that could include divesting Chrome browser and restricting default search agreements with device manufacturers.

Euronews highlighted additional scrutiny in Australia, Japan, and Canada, where competition authorities examine Google's business practices and market impact. The European Commission has fined Google over €8 billion since 2017 for various antitrust violations across multiple markets.

Alternative search engines remain marginal despite growing privacy concerns. Cloudflare data shows Google maintained 87 percent global market share in March 2025, with Bing at 3.2 percent and DuckDuckGo reaching 1.1 percent globally.

Market Implications and Industry Response

The UK's approach differs from other jurisdictions by allowing targeted, proportionate interventions rather than blanket restrictions. CMA officials said the regime aims to promote innovation while protecting consumers and businesses from unfair practices. The authority will engage directly with Google and market participants throughout the investigation process.

Press Gazette analysis suggests Google and Meta together capture approximately 60 percent of UK advertising revenue, totaling £25.4 billion in 2024. Google's UK search advertising revenue alone likely exceeds £15 billion annually based on its market share.

The tech industry watches closely as these precedents could influence regulatory approaches globally. Success or failure of the UK's targeted intervention strategy may determine whether other countries adopt similar frameworks or pursue more aggressive structural remedies.

Publishers and advertisers await clarity on how potential changes might affect their ability to reach customers and monetize content. The CMA's final decision will test whether new digital competition laws can effectively address market concentration while preserving innovation incentives in rapidly evolving tech sectors.

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