London (AFP) – Britain’s competition watchdog on Tuesday proposed measures aimed at tackling Google’s dominance in online search, with the US tech giant warning that “punitive regulations” could impact UK economic growth. The Competition and Markets Authority (CMA) said it proposes to designate Google with “strategic market status,” subjecting it to special requirements under new UK regulations. A similar tech competition law from the European Union, the Digital Markets Act, carries the potential for hefty financial penalties.
Britain’s CMA in January launched an investigation into Google’s dominant position in the search engine market and its impacts on consumers and businesses. It followed the 2025 implementation of Britain’s Digital Markets Competition Regime, which the regulator on Tuesday said “can help unlock opportunities for innovation and growth.” Google’s spokesman on competition, Oliver Bethell, warned that the CMA update, preceding a final outcome due in October, “could have significant implications for businesses and consumers in the UK.”
“The positive impact of Google Search on the UK is undeniable. Our tools and services contribute billions of pounds (dollars) a year to the UK,” he added in a statement. While noting that “Google Search has delivered tremendous benefits,” CMA chief executive Sarah Cardell said “there are ways to make these markets more open, competitive and innovative.”
The regulator said that it plans to consult on potential changes, including “ensuring people can easily choose and switch between search services — including potentially AI assistants — by making default choice screens a legal requirement.” Another proposal is for “ensuring Google’s ranking and presentation of search results is fair and non-discriminatory.” Bethell expressed concern that “the scope of the CMA’s considerations remains broad and unfocused, with a range of interventions being considered before any evidence has been provided.”
The CMA noted that “Google Search accounts for more than 90 percent” of online inquiries in the UK. It added that more than 200,000 businesses in the UK rely on Google search advertising to reach customers.
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