The UK’s competition watchdog is proposing to designate Google with strategic market status (SMS) – meaning it’s deemed to hold “substantial and entrenched market power” – in general search and search advertising.

Under the new Digital Markets Competition Regime, the Competition and Markets Authority (CMA) would gain the power to impose legally binding requirements on Google if it’s given SMS. A final decision is expected by 13 October.

A newly published roadmap outlines how the CMA might act if Google is designated, with early proposals including requiring choice screens to help users select among search providers, fairer search rankings for businesses, greater transparency and control for publishers, and improved data portability to support innovation.

“Google is the world’s leading search tool and plays an important role in all our lives, with the average person in the UK making 5 to 10 searches a day,” said Sarah Cardell, chief executive of the CMA.

“Google search has delivered tremendous benefits – but our investigation so far suggests there are ways to make these markets more open, competitive and innovative.”

Search Dominance in the Spotlight

Google processes over 90% of all general search queries in the UK. More than 200,000 UK businesses depend on Google search advertising to reach their customers. But according to the CMA, this concentration of power raises concerns that the market may not be functioning competitively.

These include:

• High barriers to entry due to Google’s vast index of sites and historical search data

• Search advertising costs that are higher than expected in a competitive environment

• A lack of transparency and fairness in how results are ranked and presented

• Difficulties for publishers in negotiating fair terms for content used in search and AI-generated responses

• Challenges for rivals due to Google’s default status on mobile devices

• Limited consumer ability to share search data with alternative services

Google said the CMA’s proposals were “broad and unfocused” but stated it would “work constructively” with the regulator. It also warned that the measures “could have significant implications for businesses and consumers in the UK.”

The CMA stressed it is not accusing Google of anti-competitive behaviour at this stage, but highlighted that the scale of its operations, particularly in combination with AI features like AI Overviews, demands close attention. While Google’s AI-based search tools would fall under the proposed SMS scope, its standalone Gemini Assistant is currently excluded.

The regulator said its approach would be “proportionate, pro-innovation,” and guided by its ‘4Ps’ framework: Proportionality, Pace, Predictability, and Process. The aim is to deliver clear and targeted interventions that promote growth without deterring investment.

Later-stage measures – expected from 2026 – may address more complex concerns, such as Google’s bargaining power with publishers and the treatment of specialist search providers.

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“These targeted and proportionate actions would give UK businesses and consumers more choice and control over how they interact with Google’s search services – as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy,” said Cardell.

The CMA is inviting feedback on the proposal before making its final ruling. In the meantime, it says it will prioritise action in current investigations and review the possibility of additional SMS probes in early 2026.