UK's CMA probes Google Search's dominance under new strategic market status regime

The UK’s Competition and Market Authority (CMA) is set to launch an investigation on Google Search in what would be the first inquiry under the new digital markets competition regime.

The UK’s watchdog regulator says that the investigation, which is set to conclude by October 2025, will determine whether Google holds strategic market status in search and search advertising sectors. It’ll also decide if its dominant position, with over 90% of UK search queries, can or already does impact competition and fairness for consumers and businesses.

The new Strategic Market Status (SMS) came into force on January 1 as a part of the UK’s Digital Markets, Competition and Consumers Act. It allows the CMA to designate Big Tech with the SMS if they hold a significant power market in certain digital sectors.

Then, if a firm is designated with SMS, the CMA can impose conduct requirements or propose pro-competition interventions to improve outcomes for consumers and businesses.

The CMA is currently seeking input from interested parties and will be gathering evidence over several stages. A proposed decision, including potential conduct requirements for Google, is expected to be published by mid-2025, with a final decision due by October 2025.

To be designated with strategic market status, a business must have market power and a turnover of £25 billion globally or £1 billion in the UK.

Now, Google said in response that it’s engaging with the CMA during the investigation. The search engine giant said that in 2023, Search and Ads contributed £118 billion to the UK economy, helping over a million businesses and supporting £20 billion in exports.