The UK’s new digital markets competition regime under the Digital Markets, Competition and Consumers Act 2024 came into force on 1 January 2025, allowing the Competition and Markets Authority (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 has now announced that legal tests have been met to designate Google with strategic market status (SMS) in general search and search advertising services. To designate a firm with SMS, the CMA must decide that it has substantial and entrenched market power and a position of strategic significance in a digital activity.
It launched an investigation into Google’s general search and search advertising services in January and consulted on its proposed decision that Google should be designated with SMS in June in addition to the publication of a Roadmap if the designation were confirmed. Following feedback from this consultation, the CMA has:
- Confirmed that Google has substantial and entrenched market power in general search and search advertising and has been designated with SMS;
- Confirmed that Google’s AI Assistant Gemini is not in the scope of the designation, but that this position will be kept under review;
- Confirmed that other AI-based search features such as AI Overviews and AI Mode, are in the scope of the designation; and
- Clarified the scope of the designation regarding Google’s news products and its syndication products
This designation does not introduce any immediate requirements but allows the CMA to consider proportionate, targeted interventions to ensure search services are open to effective competition and to ensure that consumers and businesses can have confidence they are being treated fairly. The CMA has said it expects to begin consulting on possible interventions later in the year.
This designation is separate from the CMA’s current ongoing SMS investigation into Google’s mobile platform.
