Google may have to make changes in the UK to give people more choice when choosing a search engine, following a landmark decision by the regulator.
The Competition and Markets Authority (CMA) has given Google “strategic market status” under legislation that came into force in January.
This decision does not mean that the regulator has discovered an offense at this stage.
Instead, it opens the door to what he called “proportionate, targeted interventions” to ensure market competitiveness.
Google warned against any measures that it said could “hamper UK innovation and growth”.
The CMA said it plans to launch a consultation on what changes could be made later in 2025.
In response to this announcement, Google sought to highlight what it sees as the benefits of the regulatory status quo.
“British businesses and consumers were among the first to benefit from Google's innovations, often months earlier than their European counterparts,” Google's head of competition, Oliver Bethell, wrote in a blog post.
“As a result, they see significant value: Google Search contributes billions of pounds to the UK economy – £118 billion in 2023 alone.
“Many of the intervention ideas that have been put forward in this process will hinder UK innovation and growth, potentially slowing product launches at a time of deep AI innovation.”
The CMA said Google's market dominance was unchallenged.
“We found that Google maintains a strategic position in the search and search advertising sector, with more than 90% of UK searches occurring on its platform,” said CMA head of digital markets Will Hayter.
“Based on the feedback we received following our proposed solution, we have today awarded Google Search Services Strategic Marketplace Designation.”
SMA previously published what he called a “road map” of potential actions he might take if Google were found to have significant market power.
It said it could potentially force the tech giant to include “choice screens” that would allow users to see alternative search providers and also give publishers more control over how their content is used.
It also included what it called “fair principles” for ranking websites in search results and an “effective complaints process” for companies unhappy with their placement.
The move was well received by consumer groups including Which? political chief Rocío Concha called it an “important step.”
“The CMA's careful collection of evidence makes a compelling case,” she said.
“Online search is evolving as GenAI's tools become more widely used, but the CMA still must act to tackle Google's harmful dominance.”
This isn't the only regulatory action the tech giant faces, as countries around the world consider whether it has become too dominant.
On Monday, the US Supreme Court decided not to interfere with a judge's ruling that required sweeping changes to the Google Play Store.
But the tech firm won a battle in the same jurisdiction because of lingering concerns, it may have had to sell off Chrome or Android.
He was given a fine of €2.95bn (£2.5bn). EU in Septemberfor alleged abuse of power in the advertising technology sector – the technology that determines what advertising should be placed on the Internet and where.
