Google faces UK clampdown as watchdog floats market power rules

CMA roadmap outlines potential restrictions on how ad slinger operates in the country

Google is one step closer to strategic market status (SMS) designation in the UK following a proposal from the Competition and Markets Authority (CMA) regarding search and advertising.

An SMS designation would allow the CMA to introduce targeted measures to "address specific aspects of how Google operates search services in the UK." The watchdog has published a roadmap of potential actions that includes search choice screens to allow users to select alternative providers, implementing portability of consumer search data, and ensuring "fair ranking principles for businesses appearing on Google search."

Another potential CMA action is to require "more transparency and control for publishers whose content appears in search results."

The announcement is not good news for Google, and comes after the CMA began probing the megacorp's search and ads empire in January. A spokesperson for the company told The Register that "the positive impact of Google Search on the UK is undeniable."

"This announcement presents clear challenges to critical areas of our business in the UK," they added. "We're concerned that the scope of the CMA's considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided."

The spokesperson also noted, correctly, that "strategic market status" does not imply anti-competitive behavior has taken place. However, today's proposal does hint at what might be coming later in the year.

Sarah Cardell, chief executive of the CMA, recognized Google's position as a leading search engine provider and the importance of the service in the lives of UK citizens. "Google search has delivered tremendous benefits," Cardell said, "but our investigation so far suggests there are ways to make these markets more open, competitive, and innovative."

The CMA also plans to consider a second category of actions to address issues such as 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.

In more positive news for Google, the CMA stated that while its proposed SMS designation would include AI-based search features, Google's Gemini AI Assistant is currently excluded. With an eye on the growth in consumer use of generative AI assistants, the CMA said: "This position will be kept under review as usage evolves."

Owen Meredith, chief executive of the News Media Association, commented: "We are pleased that the Competition and Markets Authority is proposing to designate Google search as having strategic market status and, in particular, the regulator's clear acknowledgment of the difficulties publishers are facing in controlling how their content is used in AI overviews. Decisive and robust action from the CMA to tackle the abusive dominance of the tech platforms cannot come soon enough."

SMS as a designation came into being with the UK's digital markets competition regime in January 2025. To be deemed of strategic significance, a business must have a global turnover of £25 billion or generate £1 billion in the UK. Designated organizations can have restrictions placed on their activities to curb market dominance, and Google was the first to come under the CMA's scrutiny.

The CMA previously accused Google of abusing its advertising dominance in 2024. The company has also faced multiple lawsuits in the US over alleged monopolization of online search and threats to force it to divest itself of the Chrome browser by the US Department of Justice's antitrust division.

Google also managed to dodge a €1.5 billion ads antitrust fine from the European Commission after an appeal ruled in the company's favor. However, it paid a €2.42 billion fine levied against it in 2017 for abusing its search dominance.

The CMA said: "A final decision on SMS designation will be made by the deadline of October 13. " ®