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The Competition and Markets Authority (CMA) has confirmed that Google has been designated with strategic market status (SMS) for its general search and search advertising services – marking a significant milestone in how the UK regulates major technology companies.
This announcement follows an extensive investigation and consultation, which concluded that Google holds substantial and entrenched market power in both general search and search advertising. It’s estimated that more than 90% of searches in the UK take place on Google’s platform.
The new designation does not accuse Google of any wrongdoing, nor does it introduce immediate changes. However, it grants the CMA the authority to implement targeted and proportionate interventions to ensure that general search services remain open to effective competition. It also enables the CMA to ensure that businesses relying on Google can have confidence they are being treated fairly.
This development forms part of the UK’s new digital markets competition regime, which came into effect at the start of 2025.
For small and medium-sized enterprises, the potential advantages could be considerable. In time, we may see fairer advertising costs, greater transparency around how search results and ad placements are managed, and fewer barriers for emerging platforms and services seeking to compete.
While no immediate changes are being introduced, consultations on possible interventions are expected later this year. It’s certainly an area to keep an eye on – particularly for businesses that depend heavily on Google Ads or organic search visibility.
