LONDON, Oct. 10 (Xinhua) -- Britain's competition regulator on Friday officially designated Google as having "strategic market status" (SMS) in online search and search advertising, marking the first major use of the country's new digital markets law aimed at curbing Big Tech dominance.
The Competition and Markets Authority (CMA) said Google holds "substantial and entrenched market power," with more than 90 percent of searches in Britain conducted through its platform. The designation, following a nine-month investigation and consultation with more than 80 stakeholders, gives the regulator new powers to impose binding rules aimed at promoting fair competition.
"This decision allows us to take targeted, proportionate action to ensure that general search services are open to effective competition," said Will Hayter, the CMA's executive director for digital markets. "By promoting competition in digital markets like search and search advertising, we can unlock opportunities for innovation and growth across the UK economy."
Under the new regime, part of the Digital Markets, Competition and Consumers Act that came into effect on Jan. 1, 2025, companies designated with SMS must comply with conduct requirements designed to prevent them from unfairly disadvantaging rivals or exploiting users.
The CMA is expected to consult on specific interventions later this year, potentially including "fair ranking" measures in search results and greater control for publishers over how Google uses their content, including in AI-generated summaries.
The designation excludes Google's Gemini AI assistant for now, though the CMA said it would keep the matter under review as AI-driven search evolves. Other AI-based features such as "AI Overviews" and "AI Mode" are covered by the ruling.
The CMA's decision reflects growing unease in Britain about the influence of large U.S. technology firms on its digital economy. Critics argue that global platforms act as "gatekeepers," limiting opportunities for local competitors.
Against this backdrop, the CMA stressed that designating Google with SMS is only the first step. Public consultation on possible remedies will follow, and other technology companies, including Apple, may soon face similar designations over their mobile ecosystems. ■