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The UK Competition & Markets Authority on Friday said Alphabet Inc subsidiary Google LLC has ‘substantial and entrenched market power’, as it seeks to begin consulting on potential interventions. The UK markets watchdog opened an investigation into the Mountain View, California-based operator of the Google search engine back in January, following the coming into force of the UK’s new digital market competition regime that same month. The regulator was focused on Google’s general search and advertising services, and consulted on its proposed decision in June that it should receive the strategic market status designation. Taking into account the evidence and feedback since then, the CMA confirmed that the company has been designated with strategic market status, noting it has ‘substantial and entrenched market power’ in general and search advertising. The CMA stated that Google’s AI assistant Gemini did not feature within the scope of the designation, but said this position remains under review given the evolution of the market. The regulator noted that the designation does not indicate wrongdoing, but enables it to consider ‘proportionate, targeted interventions’ to make sure general search services are open to effective competition. ‘By promoting competition in digital markets like search and search advertising we can unlock opportunities for businesses big and small to support innovation and growth, driving investment across the UK economy,’ said Will Hayter, executive director for Digital Markets at the CMA. ‘We have found that Google maintains a strategic position in the search and search advertising sector with more than 90% of searches in the UK taking place on its platform,’ added Hayter. The CMA said it anticipates consulting on potential interventions later in the year. Class C shares in parent company Alphabet were 0.2% lower in pre-market trading at $241.85 on Friday morning in New York. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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