Google gets strategic market status from UK’s CMA
The UK Competition and Markets Authority (CMA) has designated Google with strategic market status (SMS) in both general search and search advertising services.
The decision was made after confirming that the company holds significant and entrenched market power in these areas.
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It follows an investigation launched by the CMA on 14 January 2025 and a subsequent period of consultation with more than 80 stakeholders, as well as direct engagement with Google.
With the UK’s digital markets competition regime now active since 1 January 2025, the CMA has gained new authority to introduce targeted measures aimed at promoting competition in digital markets.
The SMS designation does not imply any breach or immediate requirements for Google. It simply enables the regulator to consider interventions where necessary to ensure competitive conditions and fair treatment of users and businesses dependent on Google’s services.
The CMA specified that while general search and search advertising services are covered by the SMS designation, Google’s Gemini AI assistant is currently excluded.
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By GlobalDataHowever, the regulator noted that this position may be reviewed if market circumstances change.
Other AI-driven search features, including AI Overviews and AI Mode, are included within the designation.
The CMA also clarified its stance regarding Google’s news and syndication products in defining the scope of SMS.
Looking ahead, the CMA indicated plans to consult on possible regulatory interventions later in the year as part of its broader oversight of the digital platforms market.
CMA Digital Markets Executive Director Will Hayter said: “By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy.
“We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform.
“Having taken into account the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status.”
Recently, Google announced a €5bn ($5.8bn) investment in Belgium for 2026 and 2027, aimed at expanding its St. Ghislain data centre campus.
This investment will strengthen the company’s AI infrastructure for Google Cloud and improve core services like Search, Maps, and Workspace.
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