The regulatory decision around Google’s dominance within search in the UK could have wide ramifications for digital marketers across various industries, writes Jyoti Rambhai, Affiliate Editor with SBC Media.

The UK’s competitions watchdog has confirmed Google is a search monopoly and is considering introducing proportional action to improve competition under the new digital markets law, which came into force in January.

The Competitions and Markets Authority (CMA) has designated Google with ‘strategic market status’ (SMS) in search and search advertising, following an investigation into its services.

The landmark decision has been welcomed by marketers claiming it has been “long overdue”. However, Google says this could “inhibit UK innovation”.

According to the CMA, which gathered evidence and feedback from more than 80 stakeholders including Google itself, the tech giant has “substantial and entrenched market power in general search and search advertising”.

The regulator confirmed that Google’s AI-based search features such as AI Overviews and AI mode are included in the scope of the designation, however, its Gemini AI assistant is not.

Will Hayter, Executive Director for Digital Markets at the CMA, said: “By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy.

“We have found that Google maintains a strategic position in the search and search advertising sector – with more than 90% of searches in the UK taking place on its platform.”

‘The rules have been written behind closed doors’

For marketers this decision is “long overdue”, said Ben Putley, CEO at Alkimi – an adtech platform powered by blockchain.

“The CMA’s decision marks an important step toward rebalancing the system. Google’s power in search is so entrenched that its behaviour shapes how the rest of the market operates. That level of influence affects every advertiser, publisher and platform trying to compete on fair terms.

“For too long, the rules have been written behind closed doors. This ruling opens the door to greater accountability and transparency – but it’s only the beginning.”

Putley suggested the industry looks at how “publishers are supported to monetise their content” without relying on a single player.

He added: “If we want a healthier digital economy, we have to give publishers and marketers the freedom to compete on creativity and value, not on who controls the infrastructure. The more open and balanced the system becomes, the more space there is for genuine innovation to thrive.”
Google search contributes billions to UK economy

In response to the ruling, Google said in a blogpost on its website, the decision could mean it will face new rules and regulations on how search works, which could “inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation”.

The tech company wrote: “To date, UK businesses and consumers have been amongst the first to benefit from Google’s innovations, often months before their European counterparts. As a result, they see significant value: Google Search contributes billions of pounds a year to the UK economy — £118bn in 2023 alone.

“The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as search. Retaining this position means avoiding unduly onerous regulations and learning from the negative results seen in other jurisdictions, which have cost businesses an estimated €114bn.”

The CMA highlighted that designating Google with SMS is not a finding of wrongdoing and does not introduce any immediate requirements. But it does enable it to consider “proportionate, targeted interventions” to improve competition within search.

It expects to begin consulting on possible intervention later this year.

Google added: “[It] supports the CMA’s goal to ensure the UK’s competition framework mirrors the best interests of UK consumers and businesses. We hope to see outcomes that reflect such ambitions in the crucial months ahead.”