Google Faces Potential Search Engine Overhaul in the UK

Tech giant Google may soon be required to make significant changes to how its search engine operates in the United Kingdom, following a major decision by the country’s competition regulator.

The Competition and Markets Authority (CMA) has formally designated Google’s search services as holding “strategic market status” (SMS) under new digital competition laws that came into effect in January 2025. While the designation does not imply wrongdoing, it gives the regulator new powers to impose targeted interventions aimed at promoting fair competition and consumer choice in digital markets.

According to the CMA, Google currently dominates more than 90% of the UK’s search market, giving it unparalleled control over how people and businesses are discovered online. The regulator said it plans to begin public consultations later in 2025 to determine what measures might be necessary to rebalance the market.

Google warns of impact on innovation

In response, Google urged caution, warning that any intervention could “inhibit UK innovation and growth.”

“UK businesses and consumers have long benefited from Google’s innovations, often months before other regions,” said Oliver Bethell, Google’s head of competition in Europe, in a blog post. He added that Google Search contributed £118 billion to the UK economy in 2023 alone, arguing that overregulation could delay product launches “at a time of profound AI-based innovation.”

What could change

The CMA has previously outlined several measures it could introduce if Google was confirmed to have strategic market status. These include:

• “Choice screens” that would allow users to easily select alternative search engines.
• Greater control for publishers over how their content appears and is used on Google platforms.
• Fair ranking principles to ensure transparency in search results.
• An effective complaints mechanism for businesses challenging their placement in search listings.

Will Hayter, who leads the CMA’s digital markets division, said the move was about ensuring a level playing field. “Google maintains a strategic position in search and search advertising,” he said. “This designation allows us to take proportionate steps to ensure fair competition and better outcomes for consumers and businesses.”

Consumer groups welcome decision

Consumer rights organisations have applauded the CMA’s decision. Rocio Concha, policy director at Which?, called it “an important step” toward tackling Google’s dominance.

“Online search is evolving with the rise of generative AI, but Google’s control still poses risks to competition,” she said. “The CMA’s evidence makes a compelling case for change.”

Part of a global reckoning

The move adds to a growing list of regulatory challenges facing Google worldwide.

In the United States, the Supreme Court this week upheld a lower court ruling requiring structural changes to the Google Play Store, while in Europe, the company was fined €2.95 billion (£2.5 billion) in September for allegedly abusing its power in the ad tech market.

Despite winning a separate US case that could have forced it to divest from Chrome or Android, the company continues to face mounting pressure from regulators seeking to curb its influence across key digital sectors.

The CMA’s final decision on possible remedies in the UK is expected sometime in late 2025, potentially marking one of the most consequential regulatory shifts for Google’s business in Europe.