Google Designated with Strategic Market Status

What the CMA’s new powers over Google mean for UK businesses

The Competition and Markets Authority (CMA) has confirmed that Google has been designated with strategic market status (SMS) for its general search and search advertising services – marking a major moment in how the UK regulates big tech.

This follows a detailed investigation and consultation that confirmed that Google has substantial and entrenched market power in general search and search advertising. It appears that more than 90% of searches in the UK take place on Google’s platform.

The new designation doesn’t accuse Google of any wrongdoing, nor does it introduce immediate changes. But it gives the CMA the power to step in with targeted, proportionate interventions to ensure that general search services are open to effective competition. It also means they can make sure that businesses that rely on Google can be confident they are being treated fairly.

The move is part of the UK’s new digital markets competition regime, which came into force at the start of 2025.

For small and medium-sized businesses, the potential benefits are significant. Over time, we may see fairer advertising pricing, more transparency in how search results and ad placements are managed, and fewer barriers for newer platforms and services trying to compete.

Nothing changes immediately, but consultations on possible interventions are expected later this year. It’s a space worth watching – especially for businesses that depend heavily on Google Ads or organic search visibility.

For more information on the government’s website – CLICK HERE

Folkes Worton LLP Chartered Accountants
Accounting for the Future