UK regulator challenges Google’s search dominance with new law

The United Kingdom’s Competition and Markets Authority (CMA) has proposed designating Google as having “strategic market status” in the search engine market.

This designation would enable the regulator to impose conditions on Google, such as changing how it ranks search results or providing users with more options.

This proposal is part of the CMA’s new authority under the Digital Markets, Competition and Consumers Act, which aims to regulate large tech companies.

Google controls over 90% of UK search queries, raising concerns from businesses like Skyscanner and Checkatrade.

These companies argue that Google favors its own services over those of competitors, leading to demands for regulatory action.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ The power of search advertising dominance in shaping market behavior

Google’s 90% market share in UK search gives it significant economic leverage over businesses, as demonstrated by past regulatory actions.

When Google suspended Viagogo from its advertising platform in 2019, the ticket reseller’s UK website traffic plummeted nearly 80%, from 4.5 million visits to just 820,000 in two months 1.

This market power creates significant dependencies for the approximately 200,000 UK businesses that rely on Google’s search advertising, spending an average of £33,000 annually per business 2.

The Viagogo case highlights why choice screens and search result rankings are central to the CMA’s investigation, as these mechanisms directly influence which businesses succeed in the digital marketplace.

Historical cases like Streetmap’s failed legal challenge against Google in 2019 show the challenges smaller companies face when competing against established search giants without regulatory intervention 3.

2️⃣ Regulatory shifts reveal the delicate balancing act between competition and investment

The CMA’s evolving approach to tech regulation reflects a global trend of increasing scrutiny followed by calibrated responses to political and economic pressures.

The regulator’s new “4Ps” framework—Pace, Predictability, Proportionality, and Process—represents a strategic shift toward more measured intervention that considers concerns about stifling innovation 4.