Tech giant Google is facing new regulatory challenges in the United Kingdom after becoming the first company to be designated under the country’s new digital market powers — a move that could force significant changes to how its search engine operates.
The UK Competition and Markets Authority (CMA) announced that Google holds a “strategic market status” in online search and advertising, giving the regulator broader authority to intervene and ensure fair competition across the digital ecosystem.
“We have found that Google maintains a strategic position in the search and search advertising sector, with more than 90 percent of searches in the UK taking place on its platform,” said Will Hayter, the CMA’s Executive Director for Digital Markets.
The designation itself is not an accusation of wrongdoing but marks a pivotal moment for tech regulation in the UK. It allows the CMA to introduce measures designed to promote competition, increase transparency, and limit potential monopolistic behavior.
In guidance published earlier this year, the regulator suggested potential interventions such as improving access to alternative search engines, enforcing fairer ranking mechanisms, and giving publishers more control over how their content is used in AI-generated search results.
Google, however, has voiced concerns that these measures could slow innovation. Oliver Bethell, Google’s Senior Director for Competition, said, “Many of the proposed interventions would inhibit UK innovation and growth, potentially delaying product development at a time of rapid AI transformation.”
The ruling comes as part of a wider international effort to curb the dominance of major tech firms. In the United States, both the Federal Trade Commission and the Department of Justice are pursuing antitrust actions against Google, including investigations into its advertising business. The European Union recently fined Google $3.45 billion for anti-competitive practices in its ad technology operations.
The CMA also confirmed that Google’s AI-based search features, such as AI Overviews and AI Mode, fall under the scope of its oversight, though the company’s Gemini AI assistant does not.
While a major overhaul of Google’s UK operations may still be months away, experts suggest that this move signals the beginning of a new era of accountability for Big Tech. The British regulator’s next consultation round, expected later this year, will determine what specific actions are implemented to reshape how Google interacts with users, advertisers, and publishers in the evolving digital landscape.
