Britain’s competition regulator has proposed new rules for Google’s search business, aiming to address its dominance in the UK market.
On Tuesday, the Competition and Markets Authority (CMA) said it plans to designate Google as having “strategic market status” in search. This designation would give the regulator the power to impose conditions, such as changing how Google ranks search results or requiring it to offer users more choice. A final decision is expected in October.
Google controls over 90% of the UK’s general search market and plays a major role in digital advertising. More than 200,000 businesses rely on its platform to reach customers.
The CMA’s proposals follow concerns from companies like Skyscanner and Checkatrade, which claim that Google favours its own services in search results.
Some of the proposed remedies, such as adding a choice screen for alternative search engines, have been used before. Others, including adjustments to result rankings, could have a greater impact if implemented.
Google warned that the proposed changes could limit the introduction of new services in the UK and said it supports proportionate and evidence-based regulation.
This is the first designation under the UK’s new Digital Markets, Competition and Consumers Act. The CMA is also conducting investigations into mobile operating systems, with a focus on Google and Apple.
A third investigation, previously expected to target Amazon, has been delayed to next year.
The CMA has spent years building a framework to regulate large tech firms like Google, Apple, and Amazon, arguing that special tools are needed to ensure fair competition in digital markets. However, the regulator now faces a new political environment.
The Labour government, newly in power, has emphasized the need for economic growth and signalled that it does not favor heavy regulation. The CMA, chaired by a former Amazon executive, has responded by stressing a “targeted and proportionate” approach to oversight, especially in fast-changing areas like artificial intelligence.
Political realities also include pressure from the United States, where President Donald Trump has taken a strong stance in defending U.S. tech companies. Some experts believe the CMA may wait to see how U.S. regulators handle their own investigations before making major moves.
The regulator is balancing growing demands for oversight with the need to maintain investment from global tech firms, which have spent billions in the UK. The outcome of the Google case will be closely watched by tech companies, legal experts, and businesses alike.
