The Competition and Markets Authority (CMA) has confirmed that the legal tests have been met to designate Google with strategic market status (SMS) in general search and search advertising services.

The UK’s new digital markets competition regime came into force on 1 January 2025, allowing the CMA to take targeted and proportionate action to improve competition in digital markets.

The CMA launched an investigation into Google’s general search and search advertising services on 14 January and consulted on its proposed decision in June that Google should be designated with strategic market status.

Since this proposed decision, the CMA has gathered evidence and received feedback from more than 80 stakeholders as well as having constructive engagement with Google.

Upon analysing the feedback, the CMA confirmed that Google has substantial and entrenched market power in general search and search advertising and has been designated with stategic market status.

It also found, however, that Google’s Gemini AI assistant is not within the scope of this designation.

However, this position will be kept under review given uncertainty over how the market is developing and could be amended in future if certain factors change and following consultation.

AI-based search features, like AI Overviews and AI Mode available as part of Google Search, are within the scope of the designation.

The CMA did say that designating Google with SMS is not a finding of wrongdoing and does not introduce any immediate requirements.

It does, however, enable the CMA to consider proportionate, targeted interventions to ensure that general search services are open to effective competition, and that consumers and businesses that rely on Google can have confidence that they are treated fairly.

“By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy,” Will Hayter, executive director for Digital Markets at the CMA, said.

“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.

“Having taken into account the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status.”

Recommended reading

• Are Google’s Digital Advertising Methods Anti-Competitive?
• Google May Face Tighter Regulation Under New UK Digital Regime
• Google Faces UK Class Action Lawsuit Over Ad and Search Dominance

In a statement for Google, Oliver Bethell, Senior Director for Competition, said that the tech giant “supports the CMA’s goal to ensure the UK’s competition framework mirrors the best interests of UK consumers and businesses,” but the firm did have some grievances.

“The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as Search. Retaining this position means avoiding unduly onerous regulations and learning from the negative results seen in other jurisdictions, which have cost businesses an estimated €114 billion,” Bethell said.

“Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation. Others pose direct harm to businesses, with some warning that they may be forced to raise prices for customers.”