Alphabet’s Google has become the first company to be granted “strategic market status” in the United Kingdom, a new designation that places its search and advertising operations under closer scrutiny by the country’s Competition and Markets Authority (CMA). According to Bloomberg, the move subjects the U.S. tech giant to more stringent oversight under rules designed to promote fair competition in digital markets.
The CMA said Google’s dominant role in online search—accounting for more than 90% of searches conducted in the UK—warrants the classification. The regulator expressed concerns about fairness in search results, rising advertising costs, and the emergence of AI-generated search responses. “We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform,” Will Hayter, executive director for digital markets at the CMA, said in a statement.
Per Bloomberg, the watchdog clarified that the designation does not imply Google has acted anti-competitively but allows for targeted interventions, including potential enforcement actions and penalties. The CMA plans to consult on specific measures later this year, focusing on areas such as user choice of search providers and fair treatment of websites in search rankings.
The regulator also stated that Google’s Gemini AI assistant is not part of the current designation but will remain “under review,” given the evolving nature of the AI market. This marks one of the first significant applications of the UK’s new digital competition rules, which took effect earlier this year.
Related: CMA Grants Google Strategic Market Status in UK Search and Advertising
The decision comes as Google faces increasing pressure from European authorities. According to Bloomberg, the European Union recently fined the company nearly €3 billion ($3.5 billion) for allegedly favoring its own advertising technology services. The fine prompted criticism from former U.S. President Donald Trump, who called the EU’s action “very unfair” and threatened retaliatory tariffs.
In response to the UK decision, Google’s senior director for competition, Oliver Bethell, warned that overly restrictive regulations could hamper innovation. He said, “Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches.” Bethell also urged policymakers to avoid “costly restrictions” that could hinder the tech sector’s development.
The CMA said it expects to launch another review in 2026 to further examine Google’s bargaining power with publishers and its control over search advertising markets.
Source: Bloomberg