A New Sheriff in Town: UK’s CMA Takes on Google with First-Ever “SMS” Designation

The UK’s Competition and Market Authority (CMA) has positioned itself as a new sheriff in the town of Big Tech, taking on Google with the first-ever designation of “strategic market status” (SMS). This powerful classification, enabled by new digital laws, allows the regulator to lay down the law for Google’s search and advertising businesses.
The SMS designation is not an accusation of illegal behavior but a formal recognition of Google’s immense and entrenched market power, exemplified by its control over 90% of UK searches. The CMA argues that this strategic position necessitates a bespoke set of rules to ensure the market works for everyone, not just the incumbent.
The CMA is now loading its ammunition for a consultation later this year on potential “conduct requirements.” The proposals on the table are significant and include mandating “choice screens” to boost rivals, enforcing fair ranking in search results, and giving publishers more power over how their content is used by Google’s AI.
Google has fired back with a warning that the CMA’s actions could backfire, potentially harming innovation and slowing product launches in the UK. This creates a classic standoff between a regulator aiming to foster competition and a dominant firm arguing that its scale is what drives innovation. Legal experts, however, see the CMA’s move as bringing the UK into step with global regulatory trends.
This first SMS designation under the Digital Markets, Competition and Consumers Act 2024 is a clear shot across the bow for dominant tech firms. While the immediate impact is procedural, it signals a new, more interventionist era of tech regulation in the UK, with the mobile ecosystems of Apple and Google next in the CMA’s line of sight.