The Competition and Markets Authority (CMA) has provided Strategic Market Status of Google (SMS) for search and search advertising.
The regulator said Google's designation of SMS status allows it to consider proportionate and targeted measures to ensure that general search services are open to effective competition and that consumers and businesses who rely on Google can be confident they are treated fairly.
However, before introducing such measures, the CMA must undertake further public consultation on their terms and implications.
Google products covered by the SMS designation include Google Search, regardless of how it is accessed, and all information it returns, including through AI Reviews and AI Mode. “This ensures that our designation reflects the evolving nature of Google's search product. It also includes Google organic search,” the CMA said.
But while some people use Google's artificial intelligence system Gemini to search the Internet, the CMA did not include Gemini in the SMS designation.
Will Hayter, chief executive of digital markets at the CMA, said: “By encouraging competition in digital markets such as search and search advertising, we can open up opportunities for businesses large and small to support innovation and growth, driving investment across the UK economy.
“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.
“Based on the feedback we received following our proposed solution, we have today awarded Google Search Services Strategic Marketplace Designation.”
Many companies provided comments CMA investigation earlier this yearwhich focused on whether Google should be called SMS.
In his material, the developer of the Vivaldi browser spoke about significant support Mozilla Foundationwhich controls the Firefox web browser received from Google and Google search status in the Firefox browser.
Vivaldi said: “We believe Google and Microsoft's search features should be available in any browser, and the revenue share should be the same percentage no matter which company uses their search. No search provider should be allowed to offer better terms by default or dictate other terms, such as what other organizations the provider partners with.” browser for search, or other transactions that generate income.”
“To create fair competition that drives more innovation and greater consumer benefits, the playing field must be leveled between companies large and small. Otherwise, Microsoft and Google will maintain dominance in various market segments while refusing to share search revenues with smaller players.”
However, commentary provided by airline IAG noted that while Google Flight Search (GFS) plays an important role in the market, IAG said it was not concerned about Google's strategic position in the market in relation to the provision of general search services and search advertising.
CMA will be required balance the needs of e-commerce sites and those calling for Google to be forced to end the revenue-sharing agreements it has with companies like Apple.
For example, easyJet noted that changes introduced through the European Union Digital Market Authority resulted in a significant shift in traffic from GFS to other vertical search services such as online travel agencies and metasearch engines. “This shift has weakened easyJet's direct online sales, impacting our ability to offer customers better value for money and service,” it said.
