UK Slaps Google Search with Special Market Status, Making Way for Stricter Regulations

On Friday, the UK’s Competition and Markets Authority (CMA) granted Google a special status in the online search market, enabling the regulator to enforce stricter regulations.

The CMA has designated Google as having “strategic market status” in the search and search advertising sectors. This designation highlights Google’s substantial and entrenched position, warranting special regulations to ensure fair competition.

The CMA’s report stated, “Google has had an unparalleled position in this digital activity for an extended period. Other traditional general search providers are significantly smaller than Google and have been for many years. Bing is the largest of these providers, but its current share of queries and search advertising is less than 5%.” The CMA emphasised that no traditional search providers have significantly increased their market share relative to Google over the past 15 years.

What Does This Designation Mean?

While this designation does not indicate any wrongdoing by Google or introduce immediate changes, it paves the way for further investigations and interventions that could reshape how Google operates its search services in the UK. The scope of the designation includes Google’s search and online search advertising services, as well as AI-powered features such as AI Overviews, AI Mode, the Discover feed, Top Stories, and the News tab. However, it does not cover the Google News app or website, nor does it address search syndication services.

The CMA also noted that, while Google’s Gemini AI assistant is not included in the current designation, the agency will review the scope in the future, especially given uncertainties about how the AI search market is evolving.

Ongoing Investigation and Possible Interventions

This designation comes after a nine-month investigation launched earlier this year following the implementation of the UK’s new digital markets competition regime in January. The investigation seeks to determine whether Google is contributing to weak competition in the search industry, creating barriers to entry and innovation, prioritising its own services over third-party offerings, or using consumer data without proper consent.

The CMA’s roadmap for potential enforcement actions includes:

• Enabling UK residents to choose and switch search engines via choice screens,

• Implementing data portability systems,

• Enforcing fair ranking of search results,

• Ensuring proper attribution of publishers’ work in search,

• Introducing consent mechanisms for Google’s AI services.

Google’s Response

Google has voiced concerns that any interventions resulting from this designation could hinder innovation in the UK. The company argued, “The UK enjoys access to the latest products and services before other countries because it has avoided costly restrictions on popular services like Search.” Google added that such regulations could stifle innovation and delay product launches during a period of rapid AI development.

The company also warned that some of the proposed interventions might harm businesses, potentially leading to higher prices for customers.