The UK economy could be set for a significant boost as the nation’s competition watchdog takes aim at Google’s search monopoly. By designating Google with “strategic market status,” the Competition and Market Authority (CMA) has gained the power to enforce changes that it believes will unlock business opportunities and drive investment across the country.
This action is the first major use of the Digital Markets, Competition and Consumers Act 2024. The CMA’s executive director for digital markets, Will Hayter, explicitly linked the move to economic growth. He argued that promoting competition in the search and search advertising sectors—where Google commands over 90% of the market—is crucial for a vibrant digital economy.
The “strategic market status” (SMS) designation allows the CMA to mandate new “conduct requirements.” Potential changes include introducing “choice screens” to promote rival search engines and enforcing fairer ranking of results. These measures are designed to create a more level playing field, allowing smaller businesses and innovative startups to compete more effectively against the tech giant.
Google has countered that these interventions could have the opposite effect, warning that they might “inhibit UK innovation and growth.” The company fears that regulatory hurdles could slow the development and launch of new products, particularly in the fast-moving field of artificial intelligence.
However, the CMA is proceeding with its plans and will launch a consultation on the specific changes later this year. The regulator’s focus on the economic benefits of its intervention signals a clear policy direction: using its new powers not just to regulate markets, but to actively shape them for national economic advantage.