The Competition and Markets Authority designates Google with Strategic Market Status for Search and Search Advertising
The Competition and Markets Authority (CMA) has officially granted Google with Strategic Market Status (SMS) for search and search advertising. This designation allows the CMA to implement targeted interventions to promote fair competition in the general search services sector, ensuring that consumers and businesses using Google are treated fairly.
Before implementing any interventions, the CMA will conduct further public consultations to assess their terms and impact. Google products covered under the SMS designation include Google Search and all related information, including AI Overviews and AI Mode. The designation also includes Google’s organic search, reflecting the evolving nature of Google’s search product. However, Google’s Gemini AI engine is not included in the SMS designation despite its usage for internet searches.
Will Hayter, the CMA’s Executive Director for Digital Markets, emphasized the importance of promoting competition in digital markets like search and search advertising. Hayter stated, “By fostering competition in digital markets, we can stimulate innovation and growth, driving investment across the UK economy.”
The CMA’s decision to designate Google’s search services with strategic market status followed feedback from various companies during the investigation. Browser developer Vivaldi raised concerns about fair competition and revenue-sharing deals between Google and Microsoft, advocating for a level playing field for all companies. On the other hand, airline IAG expressed confidence in Google’s strategic market status for general search and search advertising services.
The CMA will need to strike a balance between the interests of e-commerce sites and calls for Google to revise its revenue-sharing agreements with companies like Apple. For example, airline easyJet highlighted the impact of changes in traffic distribution caused by the European Union’s Digital Market Authority on online travel agencies and metasearch engines.
