The UK’s Competition and Markets Authority (CMA) has confirmed that the legal tests have been met to designate Google with strategic market status (SMS) in general search and search advertising services.

The UK’s new digital markets competition regime came into force on January 1st 2025, allowing the CMA to take targeted and proportionate action to improve competition in digital markets, helping to drive innovation, investment and growth across the UK economy.

The CMA launched an investigation into Google’s general search and search advertising services on January 14th and consulted on its proposed decision in June that Google should be designated with strategic market status.

Since this proposed decision, the CMA has gathered evidence and received feedback from more than 80 stakeholders as well as having constructive engagement with Google. Having analysed the feedback, the CMA has:

• Confirmed that Google has substantial and entrenched market power in general search and search advertising and has been designated with strategic market status.
• Confirmed that Google’s Gemini AI assistant is not in scope of the designation. However, this position will be kept under review given uncertainty over how the market is developing and could be amended in future if certain factors change and following consultation.
• Confirmed that other AI-based search features, such as AI Overviews and AI Mode, are in scope of the designation.
• Clarified the scope of designation with respect to Google’s news products, and Google’s syndication products.

Designating Google with SMS is not a finding of wrongdoing and does not introduce any immediate requirements. 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.

The CMA expects to begin consulting on possible interventions later in 2025.

Will Hayter, Executive Director for Digital Markets at the CMA, said: “By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy. We have found that 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 the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status.”

The UK is one of a number of jurisdictions around the world taking action to support businesses and consumers dependent on search and search advertising. This includes the US, EU and Japan.

Other posts by :

1. BBC: You’ll miss me when I’m gone
2. Some new US Starlink subs face $1,000 start-up fee
3. Project Kuiper beating OneWeb
4. OQ Tech gets Luxembourg 5G-by-Sat concession
5. Roskosmos: Heads roll, launch project scrapped
6. MDA under pressure over satellite order
7. SES backs C-band action from FCC
8. Congested orbits mean high risks of debris
9. SpaceX bids fairwell to booster 1076

Categories: Advertising, Articles, Business, Policy, Regulation, Targetted

Tags: CMA, Competition and Markets Authority