The UK’s Competition and Markets Authority (CMA) designated Alphabet-owned Google as having strategic market status in online search, citing its 90% share of UK searches. Will Hayter, CMA’s Executive Director for Digital Markets, announced the ruling, marking the first use of new powers to curb Big Tech dominance.
The designation empowers the CMA to enforce competition in Google’s search and advertising sectors. While not a finding of wrongdoing, it allows fines for non-compliance. In June, the CMA outlined possible changes, including fairer search rankings, easier access to alternative engines, and greater publisher control over AI-generated content use. Consultations on interventions are expected later in 2025.
Google’s Oliver Bethell warned, “These ideas could slow UK innovation and product launches amid AI advancements.” Google recently pledged £5 billion ($6.65 billion) in UK investments.
Google search comes under renewed scrutiny in UK as competition watchdog flexes new powers https://t.co/TliC77giYT
— CNBC (@CNBC) October 10, 2025
The ruling aligns with global actions. The US Federal Trade Commission probes Google’s ad practices, while the US Department of Justice seeks to divest its adtech tools. The EU fined Google $3.45 billion in 2025 for anti-competitive adtech practices. The CMA also investigates Google’s Android system, potentially leading to further designations.
Tom Smith, a former CMA director, supports addressing Google’s monopoly distortions, especially for AI training content. The CMA excludes Google’s Gemini AI but includes AI Overviews and AI Mode. With ex-Amazon executive Doug Gurr as interim chair, the CMA balances growth and regulation, per government directives.
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The CMA’s move could reshape Google’s UK operations, promoting fair competition and consumer choice. It sets a precedent for Big Tech oversight globally.