• by Laurie Sullivan , 11 hours ago

Google has been designated with strategic market status (SMS) in general search and search advertising services by the UK Competition and Markets Authority (CMA), allowing regulators to enforce stricter requirements after legal tests have been met.

The decision to designate Google with strategic market status is separate from the CMA’s ongoing investigation into Google’s mobile platform. 

“This is our first designation,” a CMA spokesperson told MediaPost via email. “We have other investigations open into Google and Apple in relation to mobile platforms.”

The strategic market status was announced Friday by the CMA after tests determined that Google has reached “a substantial and entrenched” position in the world and now requires special regulations to ensure fair competition.

“We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform,” stated Will Hayter, executive director for digital markets at the CMA.   

The CMA launched an investigation into Google’s general search and search advertising services on January 14, after the digital markets competition strategic market status came into force on January 1, 2025. The goal of the DMC is to improve competition across digital marketing and help drive investments in the U.K.  

"Designating Google with SMS is not a finding of wrongdoing and does not introduce any immediate requirements," according to the report. "However, it enables the CMA to consider proportionate, targeted interventions to ensure that general search services are open to effective competition, and that consumers and businesses that rely on Google can have confidence that they are treated fairly."

Since making the decision, the CMA gathered evidence and received feedback from more than 80 individuals, groups, and organizations that have an interest in or are affected by this decision.

After analyzing the feedback, the CMA confirmed Google holds "substantial" market power in general search and search advertising.

While Google’s Gemini AI assistant does not fall within strategic market status, the CMA confirmed that other AI-based search features such as AI Overviews and AI Mode, are within scope of the designation.

The UK has been one of the first to experience new features and innovations in Google Search, according to Google.

Now, the company wrote in a blog post, "many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation. Others pose direct harm to businesses, with some warning that they may be forced to raise prices for customers."