The UK’s competition watchdog has confirmed tech giant Google has been designated as having strategic market status (SMS) under new digital markets legislation.
In January the Competition and Markets Authority (CMA) received new powers under the The Digital Markets, Competition and Consumers Act 2024, in part allowing it to propose an SMS designation to companies that hold a disproportionate level of control in a specific market.
The CMA recommended in June that Google be designated as having SMS within the online search market, which has been dominated by the company for years.
The regulator confirmed on Friday that the legal tests have been met to grant the status for general search and search advertising services.
While the SMS designation does not introduce any immediate requirements, it allows the CMA to consider robust interventions to ensure competition in the market where it sees fit.
The regulator will consult this year on possible interventions.
“By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy,” said Will Hayter, executive director for digital markets at the CMA.
“We have found that Google maintains a strategic position in the search and search advertising sector. Having taken into account the feedback received following our proposed decision, we have today designated Google’s search services with strategic market status.”
Notably, the designation does not include services related to Google’s Gemini AI assistant, though the CMA has said it will keep this position under review. AI tools that have been directly integrated into Google search, including the recently launched AI mode, are within the scope of the designation.