A New Chapter for UK Tech: Google is First to Face Powerful Digital Regulator

A new chapter in UK tech regulation has officially begun, with Google becoming the first company to face the powers of a newly emboldened digital watchdog. The Competition and Market Authority (CMA) has designated Google with “strategic market status,” a landmark decision that puts the search giant’s UK operations under a microscope.
This move is the inaugural application of the Digital Markets, Competition and Consumers Act 2024, a piece of legislation designed to give regulators the tools to tackle the entrenched power of major technology firms. By classifying Google’s search business with this special status, the CMA has unlocked the ability to impose binding changes on its conduct.
The basis for the decision is Google’s overwhelming market dominance, with its platform responsible for over 90% of UK searches. The CMA believes this strategic position requires a dedicated set of rules to ensure competition can flourish. The regulator is now preparing to consult on these new rules, which could include “choice screens” for consumers and new protections for publishers.
The designation has been met with caution from Google, which argues that the UK’s path could stifle innovation at a crucial time. This perspective is challenged by legal experts, who see the CMA’s action as a necessary step to bring the UK in line with global regulatory efforts in the US and EU, which are already taking steps to curb Google’s influence.
This first designation sets a powerful precedent for how the UK will manage its digital markets going forward. With investigations into Apple and Google’s mobile ecosystems also underway, the entire tech industry is now on notice that the era of light-touch regulation is over.