Google could be forced to change search in the UK
Google may be forced to make changes to how its search engine operates in the UK after the competition watchdog granted it ‘strategic market status’ under the country’s new digital markets regime.
The Competition and Markets Authority (CMA) confirmed the designation on Friday, giving it new powers to impose rules on Google’s search and advertising businesses, which account for more than 90 per cent of online searches in the UK.
The move, made under the Digital Markets, Competition and Consumers Act, does not amount to a finding of wrongdoing.
Instead, it opens the door to potential interventions later this year, including requirements for Google to offer users “choice screens” for alternative search engines, new ranking rules, as well as more control for publishers over how their content appears online.
Will Hayter, the CMA’s digital markets boss, said the decision reflected Google’s entrenched position.
He said: “Google maintains a strategic position in the search and search advertising sector, with more than 90 per cent of searches in the UK taking place on its platform.
“Having taken into account feedback following our proposed decision, we have today designated Google’s search services with strategic market status.”
Google warns against heavy regulation
Google said it would continue to work with the regulator but warned that overly prescriptive rules could slow innovation and harm UK businesses.
“UK businesses and consumers have been amongst the first to benefit from Google’s innovations, often months before their European counterparts”, said Oliver Bethell, Google’s senior director for competition.
“Many of the ideas for interventions raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.”
Google executives have expressed frustration over the lack of clarity about what interventions may follow, City PM understands.
The company fears sweeping or unpredictable measures could make it harder to invest and roll out new features in the UK – concern shared by other major tech firms watching how the new regime unfolds.
Future outlook
The CMA will now consult on possible remedies following the decision, with proposals expected later in 2025.
These could include new transparency rules for ranking search results and limits on how data is shared across Google’s advertising ecosystem.
The regulator has insisted its goal is to “promote competition and innovation” across digital markets rather than stifle it.
But the outcome will be closely watched by rivals as Britain seeks to carve out its own post-Brexit approach to Big Tech oversight.