The U.K.’s antitrust watchdog has proposed designating Google LLC as a company with “strategic market status,” a move that could potentially expose it to closer regulatory scrutiny.
The Competition and Markets Authority, or CMA, detailed the plan today.
The development relates to a U.K. law called the DMCC Act that went into effect at the start of the year. The legislation expanded CMA’s powers to regulate large tech firms. Under the DMCC Act, a company that receives strategic market status can be fined up to 10% of its annual revenue for breaching antitrust rules. Officials can also order it to change its business practices.
The CMA opened a probe to determine whether Google should receive strategic market status in January. The investigation focused on the company’s activities in two markets: the search engine and search advertising. Those segments were also the focus of a recent U.S. antitrust ruling that found Google has used unfair business practices to maintain its market position.
As part of its investigation, the CMA held discussions with competing search providers, advertisers and other market participants. Officials later conducted a study to gauge consumer sentiment about artificial intelligence assistants. Today’s proposal to give Google strategic market status is the fruit of that investigation.
“Google search has delivered tremendous benefits – but our investigation so far suggests there are ways to make these markets more open, competitive and innovative,” said CMA Chief Executive Sarah Cardell.
If Google’s designation is finalized, the CMA could order the company to change several of its business practices. The regulator today previewed the potential changes that it may seek.
According to the CMA, Google might be asked to provide choice screens that would make it easier for users to switch between search engines and AI assistants. It’s unclear which of the company’s products would receive with the choice screens. Android, Chrome and ChromeOS are three likely candidates.
The CMA may also require Google to implement measures for ensuring that business websites are ranked fairly in search results. Publishers, meanwhile, could receive “more transparency and control” with regard to how their content appears in search results and AI prompt responses.
Another potential CMA order may require Google to share data about its users’ searches with other tech firms. The company uses that data to improve the relevance of its search results. As a result, sharing the information with rivals could enable them more effectively compete with Google Search.
The CMA plans to collect feedback on its proposal before issuing a final decision on Oct. 13. In the first half of 2026, the regulator intends to explore a second set of potential antitrust concerns related to Google’s search business. Officials will study matters such as the transparency of Google’s search advertising services and the way its business practices affect rivals.
Photo: Unsplash
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