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Britain’s competition authority has taken a major step towards stricter oversight of Google, designating the tech giant with “strategic market status” (SMS) in a move aimed at curbing its dominance in online search.
The decision, announced on Friday, follows a nine-month investigation by the Competition and Markets Authority (CMA).
“We have found that Google maintains a strategic position in the search and search advertising sector,” said Will Hayter, CMA executive director for digital markets.
The designation subjects Google to special regulatory obligations under targeted measures designed for major technology companies.
The CMA plans to launch a consultation later this year to determine the specific rules and requirements that will be imposed on the US-based company.
While a similar European Union law, the Digital Markets Act (DMA), carries the potential for significant financial penalties, the CMA’s approach is tailored to the UK market.
Google warned against regulations it considered “unduly onerous,” urging UK authorities to consider the “negative results seen in other jurisdictions” under the EU’s DMA. Oliver Bethell, Google’s senior director for competition, argued that many proposed interventions “would inhibit UK innovation and growth.”
The CMA confirmed that Google’s Gemini AI assistant is not included in the SMS designation but will continue to be monitored, while other AI-powered search features will fall under the new regulatory status.
The investigation, launched in January, examined Google’s dominant position in the UK search engine market and its impact on consumers and businesses. Google currently handles more than 90 per cent of online searches in the country.
Separately, Google and Apple are under review to determine whether they should also be granted SMS designation for their influence in the mobile device market.
