The UK’s Competition and Markets Authority (CMA) is taking aim at Google’s dominance in the online search market. The CMA announced on Tuesday that it’s proposing to grant Google “strategic market status” under the newly enforced Digital Markets, Competition and Consumers Act. This designation is reserved for tech giants exhibiting significant market power, and it carries serious implications for Google’s operations in the UK.
This move reflects a growing global trend of increased regulatory scrutiny of Big Tech companies. The CMA’s expanded powers, mirroring similar legislation in the European Union (the Digital Markets Act), allow them to directly enforce consumer protections and impose hefty fines—up to 10% of global annual revenue—for violations. If Google receives strategic market status, the CMA has outlined several potential changes, including mandatory choice screens to facilitate easier switching between search engines, ensuring fair and non-discriminatory search rankings, and greater control over how publishers’ content is used, especially in AI-generated responses. Data portability for consumers is also on the table.
Google has responded to the CMA’s proposal with concern, stating that the potential changes could significantly impact both businesses and consumers in the UK. Oliver Bethell, Google’s senior director for competition, expressed apprehension about the breadth and lack of focus in the CMA’s considerations, arguing that interventions are being proposed before sufficient evidence has been presented. Despite these concerns, Google has pledged to continue collaborating with the CMA to prevent the imposition of these measures.
This action by the CMA is just one piece of a larger puzzle. Global regulators are increasingly focused on curbing the influence of Big Tech, with recent examples including a US judge ruling that Google holds illegal monopolies in online advertising technology and the EU’s likely dismissal of Google’s appeal against a substantial antitrust fine. The UK’s assertive stance against Google underscores a broader global movement to foster greater competition and consumer protection in the digital sphere. The outcome of the CMA’s consultation will undoubtedly set a precedent, not only for Google’s future in the UK but also for how other tech giants are regulated worldwide.
