Google Faces Potential Overhaul of UK Search Operations Amid Regulatory Scrutiny

Published 24 June 2025

Highlights

• The UK's Competition and Markets Authority (CMA) is investigating Google for its dominant position in the search market, which accounts for over 90% of searches in the UK.
• Proposed changes include introducing "choice screens" to allow users to select alternative search engines and enhancing transparency in Google's advertising practices.
• The CMA's investigation is part of a broader regulatory effort under the Digital Markets, Competition and Consumers Act, aiming to foster competition and innovation.
• Google has expressed concerns that these changes could significantly impact businesses and consumers in the UK, potentially altering access to its innovations.
• The CMA plans to finalize its decision in October, with further actions on complex issues like search advertising transparency expected by 2026.

Google may soon be required to implement significant changes to its search operations in the UK, as the Competition and Markets Authority (CMA) intensifies its investigation into the tech giant's market dominance. The CMA's probe, initiated under the new Digital Markets, Competition and Consumers Act, aims to ensure fair competition in the online search sector, where Google currently commands over 90% of the market.

Regulatory Measures and Market Impact

The CMA has outlined a series of potential regulatory measures, including the introduction of "choice screens" that would allow users to select from alternative search engines. This move is intended to enhance user choice and stimulate competition, potentially incorporating AI-powered search rivals like Perplexity and ChatGPT. Additionally, the CMA is considering measures to ensure fair ranking of search results and greater control for publishers over their content, particularly in AI-generated responses.

Google, owned by Alphabet, has acknowledged the CMA's suggestions but criticized them as "broad and unfocused." The company has committed to working constructively with the regulator, though it warns that the proposed changes could have significant implications for UK businesses and consumers, possibly affecting the country's access to Google's innovations.

Broader Regulatory Context

This investigation marks a pivotal moment in the UK's regulatory landscape, as the CMA prepares to designate Google with "strategic market status," a classification that allows for more stringent oversight. If confirmed, Google would be the first company to receive this designation since the CMA gained new powers earlier this year.

CMA Chief Executive Sarah Cardell emphasized that the proposed actions are "targeted and proportionate," aiming to provide UK businesses and consumers with more choice and control over their interactions with Google's search services. The regulator also plans to address more complex issues, such as Google's treatment of rival specialized search platforms and transparency in search advertising, with further actions expected by 2026.

Industry Reactions and Future Implications

The investigation has drawn mixed reactions from various sectors. Airlines and media publishers have expressed concerns about the impact of Google's search practices on their industries, while some companies, like EasyJet, have reported negative effects from similar regulatory changes in the European Union.

Tom Smith, a competition lawyer and former legal director at the CMA, noted that while the regulator could have pursued more aggressive measures, it is balancing its approach to avoid stifling economic growth. The UK Chancellor, Rachel Reeves, has urged regulators to foster economic expansion, highlighting the delicate balance between regulation and innovation.

What this might mean

As the CMA moves towards a final decision in October, the potential designation of Google with "strategic market status" could set a precedent for future regulatory actions against other tech giants. Should the proposed changes be implemented, they may pave the way for increased competition in the search market, potentially benefiting consumers with more choices and better services.

However, the implications for Google's business model and its relationship with UK businesses remain uncertain. The company's concerns about the impact on innovation and access to its services could lead to strategic adjustments in its operations. As the regulatory landscape evolves, the tech industry will be closely watching the outcomes of this investigation and its broader implications for digital markets worldwide.