Ddos 
The UK Competition and Markets Authority (CMA) has formally designated Google as holding a “Strategic Market Status” (SMS) in the fields of search and search advertising services, marking it as one of the first tech giants to come under heightened scrutiny under the UK’s new digital markets regulatory regime.
According to the CMA, Google possesses “substantial and entrenched market power” in general search, with its dominance exerting a profound influence on digital competition and market fairness.
The CMA first launched an investigation into Google’s search and advertising operations in January 2025 to determine whether the company met the criteria for Strategic Market Status. The findings confirmed that Google controls over 90% of search traffic in the UK, a dominance that deeply shapes the advertising ecosystem and related digital platforms.
Will Hayter, Executive Director for Digital Markets at the CMA, stated:
“Google maintains a strategic position in search and search advertising. It is essential to ensure that the market remains open to competition and that businesses reliant on Google’s platforms continue to receive fair treatment.”
Under the new framework, the CMA will have the authority to impose proactive market interventions on companies with SMS designation. These measures may include mandating algorithmic transparency, restricting self-preferencing of proprietary services, and enforcing data interoperability standards—all aimed at preserving fair competition.
This development makes the United Kingdom the second major jurisdiction after the European Union to adopt an ex ante regulatory approach toward large technology companies.
In response, Google issued a statement expressing concern that some of the CMA’s proposed measures could “stifle innovation and hinder economic growth” in the UK, particularly amid the rapid evolution of AI. The company argued that British users have enjoyed early access to new products such as Google Search, AI Overview, and AI Mode precisely because the country has avoided overly restrictive regulations.
Google warned that excessive intervention could replicate the negative consequences of the EU’s Digital Markets Act (DMA)—namely, higher operational costs and increased product prices. The company cited estimates suggesting that the DMA has raised business operating expenses by approximately €114 billion, urging UK regulators to “avoid repeating the same mistakes.” Google further contended that restrictions on Search and AI innovation would ultimately harm both users and local industries.
The CMA, meanwhile, announced plans to hold a public consultation before the end of the year on potential intervention measures. Discussions will focus on balancing fair competition with consumer interests in the realms of search and search advertising. Notably, the SMS designation currently covers Google’s AI Overview and AI Mode features but does not yet extend to the Gemini AI assistant.
As the global digital economy enters an AI-driven era, Google now faces simultaneous regulatory pressures from the EU, UK, and United States. For the broader tech industry, this escalating tug-of-war between regulation and innovation represents not merely a policy debate—but a defining trial for how search technology and generative AI will coexist in the years to come.
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