UK Watchdog Grants Google 'Strategic Market Status' in Major Regulatory Move

The United Kingdom’s Competition and Markets Authority has officially designated Google with “strategic market status” under the country’s new digital markets competition regime, marking a significant development in the ongoing global scrutiny of big tech companies. This designation, announced on October 10, 2025, specifically targets Google’s dominant position in general search and search advertising services, where the company commands more than 90% of all searches conducted in the UK[1][3].

What Strategic Market Status Means

The strategic market status designation represents a powerful regulatory tool introduced under the UK’s digital markets competition regime, which came into force on January 1, 2025[3]. The CMA determined that Google holds “substantial and entrenched market power and a position of strategic significance” in the search industry, but importantly, this designation does not automatically indicate wrongdoing[3].

What it does enable, however, is substantial regulatory oversight. The designation allows the CMA to launch targeted interventions to ensure general search services remain open to effective competition and that businesses relying on Google’s platform are treated fairly[3]. Will Hayter, Executive Director for Digital Markets at the CMA, emphasized the company’s dominant position: “We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform”[1].

Scope of the Designation

The designation encompasses Google’s traditional search functionality as well as its newer AI-powered features, including AI Overviews and AI Mode. However, the CMA explicitly excluded Google’s Gemini AI assistant from this designation, at least for the present time[1][3].

This distinction is particularly noteworthy given the rapid evolution of AI-powered search technologies and suggests the regulator is taking a nuanced approach to different types of AI implementations within Google’s ecosystem.

Google’s Response and Concerns

Google has expressed significant concerns about the potential implications of this designation. Oliver Bethell, senior director of competition at Google, warned that the company expects to face “new rules and regulations on how Search works” in the near future[1]. The tech giant argues that many of the intervention ideas raised during the CMA’s months-long investigation “would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation”[3].

The company went further, suggesting that some proposed interventions could “pose direct harm to businesses” and potentially lead to higher prices for consumers[3]. Google specifically pointed to the European Union’s Digital Markets Act, which designated the company as a gatekeeper in 2023, claiming that such regulations have cost businesses an estimated €114 billion[3].

What Comes Next

The CMA has indicated it expects to begin consulting on possible interventions later in 2025[1][3]. These consultations will likely shape the specific regulations Google must follow in the UK market, potentially affecting everything from how search results are displayed to how the company interacts with advertisers and competing services.

The investigation that led to this designation was launched on January 14, 2025, giving the CMA several months to thoroughly examine Google’s market position before making its determination[3]. The relatively swift designation suggests the evidence of Google’s market dominance was clear and compelling.

This move places the UK alongside the European Union in taking a more aggressive regulatory stance toward major technology platforms, though the specific implementation may differ based on the UK’s unique legal framework post-Brexit. As the regulatory landscape continues to evolve, Google and other tech giants will need to navigate an increasingly complex web of compliance requirements across different jurisdictions.

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