The UK’s Competition and Markets Authority (CMA) is proposing to designate Google with Strategic Market Status (SMS) under the Digital Markets, Competition and Consumers Act (DMCCA). This would give the CMA enhanced powers to impose conduct requirements specifically targeting Google’s search and search advertising operations.
What’s going on
- The proposed designation covers Google Search (in all its forms, including mobile and desktop), Google Ads, AdSense for Search, and related infrastructure.
- As an SMS firm, Google would be required to change how its services potentially favour its own offerings over those of competitors — for example in ranking results, how ad slots are presented, transparency around how ads work, and potentially giving easier access or fairer terms to rival search or content-providers.
- There is a deadline: the decision whether to confirm Google’s SMS designation is expected by October 13, 2025.
Why this matters
- If Google gets the SMS label, it will be legally bound under UK regulation to follow stricter rules. This could affect how competitive the search advertising market is, possibly reducing costs or barriers for advertisers and publishers currently disadvantaged by Google’s dominance.
- Advertisers might see changes in how ad auctions work or how search-ads are displayed. For example, more transparency in auction terms, or constraints on how Google can favour its own ad inventory.
- Publishers (sites whose content appears in search results) may gain more negotiating power or visibility if Google is forced to be more open about how it treats content sources and ad partners.
Things to watch
- How Google responds: Will it contest the designation or negotiate specific carve-outs?
- What the conduct requirements will look like in practice: Will they be behavioural (e.g. rules about ranking, visibility, transparency) or structural (e.g. forced separation of some ad-tech infrastructure)?
- What knock-on effects this could have outside the UK: If Google is subject to strong requirements in the UK, similar pressures may appear elsewhere.
