The UK’s Competition and Markets Authority (CMA) has concluded its strategic market status (SMS) investigation into Google’s general search services, determining that the company holds substantial and entrenched market power in both general search and search advertising. The decision, published on 10 October 2025, marks the first major SMS designation under the UK’s new digital markets regime.
According to the CMA, general search is a critical gateway through which consumers access the web and businesses reach customers. In the UK, Google handles over 90% of all search queries, and more than 200,000 firms rely on its advertising services, spending over £10 billion annually. While users do not pay directly for search, the CMA noted that the costs of search advertising ultimately fall on consumers through higher prices for goods and services.
The authority’s investigation emphasized that Google’s dominant position has persisted for more than a decade. Competing search engines, including Microsoft’s Bing, account for less than 5% of search queries, while specialised search platforms such as Amazon or social networks provide only limited alternatives. The CMA also found that Google’s extensive ecosystem of products—such as Android, Chrome, Maps, and YouTube—reinforces its power by controlling key access points and amassing data advantages that competitors cannot match.
The decision also addressed the rapid development of AI-driven search tools. Although generative AI systems like ChatGPT have gained traction, the CMA found that their use for general search remains limited, and Google is well positioned to integrate AI technologies—such as its Gemini AI assistant and AI Overviews—to maintain its leadership.
Barriers to entry remain high, the CMA observed, due to Google’s default search agreements, its massive datasets, and the costs of building and monetising search infrastructure. These factors make it extremely difficult for rivals to compete effectively.
The CMA’s designation does not allege wrongdoing or impose remedies. Instead, it formally recognizes Google’s strategic significance within the UK’s digital economy, opening the door for potential pro-competition interventions under the Digital Markets, Competition and Consumers Act.
Internationally, the CMA’s findings align with enforcement actions by other regulators. In the United States, Google has been found to have maintained monopolies in search markets, while the European Commission continues to investigate its compliance with the Digital Markets Act. Similar actions have been taken by authorities in Japan and Australia.
In sum, the CMA concluded that Google’s influence on how people and businesses interact online is unmatched, and that competition and innovation in general search depend on ensuring a fairer, more open environment.
