The United Kingdom has taken a bold step toward reining in the power of Big Tech. The Competition and Markets Authority (CMA), the UK’s competition watchdog, is targeting Google’s dominance in the search engine market under the country’s tough new digital market rules. This marks the first time these new laws are being applied — and Google is not happy.
The CMA is considering giving Google a powerful new label: Strategic Market Status (SMS). This would force the tech giant to follow specific rules aimed at creating a more open, competitive, and innovative search environment in the UK.
Why Is Google Under Scrutiny?
Google holds a dominant position in online search and search advertising — two key parts of the digital economy. In fact, most people in the UK use Google multiple times a day. According to the CMA, the average UK resident performs five to ten Google searches daily.
While Google’s services are widely used and trusted, the CMA believes that its control over the market may be limiting competition and keeping advertising costs high. In response, the regulator is exploring ways to open up the market and give consumers and publishers more control.
What Is Strategic Market Status (SMS)?
Under the UK’s new digital market laws, companies with significant influence over a digital sector can be given Strategic Market Status. This label comes with a set of conduct rules to ensure fair competition and prevent abuse of market power.
If Google receives the SMS label for search and search advertising, it will be required to:
- Apply “fair ranking” in its search results
- Provide more transparency around how search results are generated, especially when AI is used
- Give publishers more control over how their content is displayed
- Ensure device makers like Apple offer “choice screens”, allowing users to choose alternative search engines more easily
A final decision will be made by October 2025, after a public consultation period.
Google Pushes Back
Unsurprisingly, Google is fighting the proposals. The company says the CMA’s plan is too broad and could slow down the rollout of new products in the UK.
Oliver Bethell, Google’s Senior Director for Competition, warned that “punitive regulations” could act as a roadblock to innovation. He added that the CMA needs to take a balanced approach that supports growth and investment without creating too much uncertainty.
Google also pointed out that it recently announced plans to invest $1 billion in a new data center near London, a move seen as a major commitment to the UK tech ecosystem.
What’s at Stake?
The CMA’s investigation, which began in January 2025, is part of a broader effort to ensure that digital markets work well for consumers and businesses. This push comes after Google faced legal setbacks in the United States, where it lost key antitrust cases related to its control over search and advertising.
In the UK, the government has directed the CMA to support growth and investment while enforcing fair competition. This means that regulators must balance innovation with accountability — a tricky task when dealing with tech giants like Google.
A New Era for Big Tech Regulation?
The UK’s move is part of a growing global trend. Governments and regulators around the world are becoming more concerned about the power of Big Tech, especially companies that dominate online platforms and advertising markets.
By targeting Google first, the UK is sending a strong message: even the biggest tech companies must play by new rules if they want to operate in critical digital markets.
Sarah Cardell, CEO of the CMA, said:
“Google is the world’s leading search tool and plays an important role in all our lives… Our investigation so far suggests there are ways to make these markets more open, competitive, and innovative.”
What Happens Next?
The CMA will continue its investigation and consult with the public and other stakeholders before making a final decision by October 2025. If Google is officially given Strategic Market Status, it will have to follow a clear set of rules aimed at increasing transparency and consumer choice.
While the tech giant warns that these changes could impact its product roadmap, supporters of the CMA’s move argue that real competition in search and advertising could lead to better services, lower costs, and more innovation across the industry.
The UK’s challenge to Google could be the beginning of a major shift in how digital markets are regulated. If successful, it may encourage other countries to adopt similar frameworks, ensuring that no single company has unchecked control over how we search, browse, and consume information online.
The next few months will be critical in shaping the future of digital competition. Whether you’re a tech user, publisher, advertiser, or policymaker — this is a story worth watching.
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