• by Laurie Sullivan  @lauriesullivan, Yesterday

Google Search may need to give U.K. consumers more choice to pick an engine for online services, as competition in the space increases and generative artificial intelligence (GAI) plays a major role in searches and services. 

The Competition and Markets Authority (CMA) proposed Google's general search and advertising businesses fall within the “strategic market status” (SMS), which would give it authority to investigate it under a new law.

Under the new law, if the CMA designates Google with the status of SMS, it gives regulators the power to review its competition and possibly demand change. This law would apply to any company the watchdog felt holds too much power in one market.

Google accounts for more than 90% of searches in the U.K. and 200,000 businesses use the company's search advertising to reach customers, according to the CMA.

U.K. consumers have suffered from weak competition, meaning they pay too much for products and services, a sentiment that the watchdog has determined for years.

In the U.K., the average person conducts between five and 10 searches daily, and businesses spend an average of £33,000 a year on Google advertisements, according to the CMA.

CMA CEO Sarah Cardell believes Google search has delivered "tremendous benefits," but the watchdog’s investigation suggests there are ways to make markets more open, competitive and innovative.

“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,” according to a published statement.

The CMA launched the investigation in January based on many concerns from other companies such as the range of websites Google can index and has access to that includes trillions of historical searches, a task extremely difficult for others to replicate.

Other concerns include higher costs for search advertising, limited transparency, and publishers face challenges securing fair terms and control over how their content is used in Google’s search and AI-generated responses.

Default agreements with mobile device manufacturers can make it more difficult for competitors to reach customers, and businesses struggle to compete as people can’t easily share their search data with firms developing new services.

The CMA also has considered how generative AI (GAI) is changing search, and continues to review how the landscape continues to change. "The CMA’s proposed SMS designation would include AI-based search features, though not Gemini AI Assistant itself. This position will be kept under review as usage evolves," according to the CMA, which has said it is trying to open opportunities for other companies. 

It plans to consider what it calls a "second category of actions to address more complex issues over a longer period (starting in the first half of 2026)."

These concerns include the impact of Google’s bargaining position on publishers, its treatment of rival specialized search firms, and concerns about transparency and control in relation to search advertising.

The CMA is open for comment. A final decision on SMS designation will be made by the deadline of 13 October.