The UK’s Competition and Markets Authority (CMA) has officially granted Google a “strategic market status” (SMS) designation in online search and search advertising — marking the first major enforcement under Britain’s new Digital Markets, Competition and Consumers Act (DMCCA).
Following a nine-month investigation involving over 80 stakeholders, the CMA concluded that Google holds “substantial and entrenched market power,” with over 90% of searches in Britain conducted through its platform. The SMS designation gives the regulator enhanced powers to enforce fair competition rules and prevent market abuse by Big Tech firms.
“This decision allows us to take targeted, proportionate action to ensure general search services remain open to effective competition,” said Will Hayter, the CMA’s executive director for digital markets.
Under the new regime, SMS-designated companies must comply with strict conduct requirements preventing them from unfairly disadvantaging rivals or exploiting users. The CMA plans to consult on potential interventions later this year, including “fair ranking” in search results and greater publisher control over content use in AI-generated summaries.
While Google’s Gemini AI assistant is excluded from the ruling for now, AI-driven features like AI Overviews and AI Mode are covered. The CMA also hinted that Apple and other tech giants could face similar scrutiny soon.