Google Set To Face Unprecedented UK Regulatory Scrutiny As CMA Flexes New Powers

In a landmark development for UK tech regulation, Google faces potential forced alterations to its search business operations under new proposals from the Competition and Markets Authority (CMA). The watchdog’s unprecedented move could require the tech giant to offer users alternative search engine choices, marking a significant shift in the digital marketplace landscape.

The CMA’s designation of Google as having “strategic market status” emerges from the company’s dominant 90% share of British search queries. This classification grants the regulator enhanced powers to implement tailored regulatory measures, including the introduction of choice screens for search services and ensuring equitable result rankings.

Sarah Cardell, CMA’s chief executive, emphasised the strategic importance of these measures, describing them as targeted and proportionate actions designed to enhance choice and control for UK businesses and consumers. The regulatory body’s approach aims to unlock innovation opportunities across Britain’s tech sector whilst maintaining economic growth.

The proposed regulations extend beyond simple user interface changes. Publishers stand to gain increased control over their content utilisation, particularly concerning AI-generated responses. The CMA is also considering the integration of emerging AI-powered competitors such as Perplexity and ChatGPT into the choice screens.

Google’s response reflects concern over the broad scope of the CMA’s considerations. Oliver Bethell, Google’s senior director for competition, warned that punitive regulations might affect the UK’s traditionally early access to Google innovations. This stance signals potential challenges in implementing the proposed changes.

The timing of these regulatory measures aligns with broader international scrutiny of tech giants. The CMA’s decision to delay certain aspects, including action on default agreements, until the resolution of ongoing US Department of Justice proceedings, demonstrates the complex interplay between global regulatory frameworks.

Market analysts observe that while the CMA’s approach appears measured, it represents a significant step towards rebalancing power in the digital marketplace. The October 2025 confirmation deadline looms as a crucial moment for both Google and the future of digital regulation in the UK.