The UK’s Competition and Markets Authority (CMA) announced Tuesday it is considering designating Google with “strategic market status” under a new digital markets competition regime. This designation could require Google to provide alternative search options for users, adopt fairer ranking practices, and offer publishers greater control over how their content is used in search and AI services such as AI Overviews.
Potential Requirements and Impact
If designated, Google would need to implement choice screens allowing users to select and switch between different search providers, including AI assistants. Additionally, the company would have to ensure fair ranking of search results and improve data portability, making it easier for users to transfer their search histories. Publishers would also gain more control over how their content is utilized within Google’s AI offerings like Gemini AI Assistant.
UK businesses spent over £33,000 per advertiser on Google search ads in 2024, underscoring Google’s dominance—handling more than 90% of general search queries. CMA CEO Sarah Cardell said that the proposed measures would give businesses and consumers more control and could unlock greater innovation in the UK tech sector and economy.
The CMA is currently consulting with industry stakeholders and expects to make a decision by October 13. Google has yet to comment on the proposal.
What The Author Thinks
Designating Google with strategic market status is a necessary move to curb excessive market power and create a fairer playing field. While Google’s dominance has driven innovation, unchecked control can limit competition and increase costs for businesses and users. This regulation, if balanced well, could empower consumers and publishers without stifling Google’s ability to innovate.
