June 24, 2025— Britain’s competition watchdog is preparing to crack down on Google’s dominance in the online search market in a landmark move under the country’s newly strengthened digital regulations. The Competition and Markets Authority (CMA) announced on Tuesday that it is proposing to designate Google with “strategic market status” (SMS), a classification that would grant the regulator the power to impose legally binding obligations on the U.S. tech giant.
If finalized in October, the designation will mark the first time any company has been labeled with strategic market status since the UK’s new digital regime came into force earlier this year. The CMA says the measure is intended to promote fairer competition, particularly in how businesses are ranked in search results, and to increase user choice.
A Targeted First Step
The CMA’s proposal targets Google’s search services, which dominate over 90% of the UK market. According to CMA Chief Executive Sarah Cardell, the move is not an indictment of Google’s success but a recognition of the need for fairer and more innovative digital markets.
“Google’s search engine has brought huge benefits to people and businesses in the UK,” Cardell said in a statement. “But we’ve found that it could be much fairer and more open. These targeted and proportionate actions would give UK businesses and consumers more choice and control over how they interact with Google’s search services—as well as unlocking greater opportunities for innovation across the UK tech sector and broader economy.”
The proposed measures under the SMS designation include ensuring fairer ranking for businesses in search results, improving access to rival search engines, and increasing transparency for content publishers. The CMA also wants Google to make user data more portable, a step that would allow new entrants to more easily compete with established players.
Google Pushes Back
In response, Google expressed concern about the CMA’s plans. Oliver Bethell, Google’s Senior Director for Competition, criticized the broad scope of the proposals.
“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,” Bethell said. He warned that the measures could have “significant implications” for both businesses and consumers in the UK.
The tech company has frequently argued that its services provide users with free access to high-quality information and tools and that its dominance in search is a result of superior product performance rather than anti-competitive behavior.
A Landmark in Tech Regulation
The proposed SMS designation is part of a broader effort by UK regulators to rein in the market power of Big Tech firms. The CMA’s new Digital Markets Unit (DMU), set up to oversee competition in digital markets, was granted formal powers earlier this year under the Digital Markets, Competition and Consumers Act.
Under the Act, companies designated with SMS can be subject to codes of conduct tailored to their specific operations. These rules are enforceable by law, and breaches can result in significant fines or other corrective actions.
In Google’s case, the CMA believes the company’s overwhelming control of the UK search market has created barriers for competitors and limited innovation. The regulator also points to complaints from publishers and businesses who say they lack visibility and control over how their content is used or ranked.
More Reforms to Follow
While the current proposals focus on search services, the CMA said this is only the beginning of a longer-term strategy to address concerns around Google’s wider operations. Starting in 2026, the regulator intends to launch further actions targeting more complex areas such as the company’s treatment of vertical search competitors—like travel or shopping comparison sites—and transparency in search advertising.
“These steps are part of a roadmap of future action,” Cardell said. “We want to work with Google and other stakeholders to ensure our approach is collaborative, evidence-based, and ultimately serves the public interest.”
What’s Next?
The CMA is currently consulting on the proposed SMS designation and expects to make a final decision by October 2025. If the designation is confirmed, Google will be required to comply with the new obligations or face enforcement action.
The announcement has already sparked a broader debate among UK policymakers, tech firms, and consumer advocacy groups. Some experts see the CMA’s move as a much-needed rebalancing of power in digital markets, while others caution that overregulation could stifle innovation.
In any case, the CMA’s actions signal a clear intent: to ensure that digital markets in the UK remain open, fair, and competitive in the face of unprecedented market concentration. With Google at the center of this new regulatory era, other tech giants are likely watching closely.
