Internet users in the UK may soon see significant changes to their Google search experience, as the country’s competition authority has taken a decisive step to regulate the tech giant. The Competition and Market Authority (CMA) has conferred “strategic market status” on Google, a powerful designation under new laws that allows the regulator to mandate changes to promote competition.
This move establishes a special regulatory regime for Google’s search and search advertising businesses, which are deemed to have profound market power. The CMA’s decision was based on data showing Google’s platform is used for over 90% of searches in the UK. The new status gives the watchdog the legal teeth to address this dominance directly.
The CMA is exploring several transformative ideas. One of the most prominent is a “choice screen” that would prompt users to actively select their preferred search engine, rather than defaulting to Google. This could provide a major boost to competitors, including emerging AI platforms like Perplexity. The authority is also looking into rules for fairer search rankings and empowering publishers by giving them more say in how their content is used by Google’s AI.
Predictably, Google has raised concerns about the potential consequences. The company argues that the proposed regulations could create barriers to innovation and slow the deployment of new products in the UK, especially at a time of rapid AI advancement. However, legal experts specializing in competition law have welcomed the move, stating that the CMA now has the ability to tackle market distortions that the US and EU are already addressing.
The designation is the first of its kind under the UK’s new Digital Markets, Competition and Consumers Act 2024. While Google faces no immediate penalties, the CMA will begin a formal consultation process this year to define the new rules of engagement. This action sets a significant precedent as the regulator continues its separate investigation into whether Apple and Google’s mobile operating systems also warrant this special status.