Google will not face any immediate changes to its UK business, but the company is officially on notice after the competition watchdog designated it with “strategic market status.” The Competition and Market Authority (CMA) has stressed that the decision is not a finding of wrongdoing and will not trigger instant penalties, but it does fire the starting gun on a process that will lead to new rules.
The designation is a crucial procedural milestone. It grants the CMA the legal authority it needs to move to the next stage: a public consultation on potential “conduct requirements” for Google. This consultation, expected to launch later this year, will be the main event where the future of Google’s UK operations is debated and decided.
During this period, the CMA will formally table its proposals, which are likely to include “choice screens,” fair ranking obligations, and new rights for publishers. Google will have the opportunity to formally respond, present evidence, and argue its case that such measures would harm innovation. Other stakeholders, from rival search engines to consumer groups, will also weigh in.
This deliberate, step-by-step process is designed to be robust and legally defensible. By not taking immediate action, the CMA is ensuring that any new rules are well-considered, evidence-based, and have been subject to public scrutiny.
However, for Google, this period represents a significant regulatory overhang. The company must now prepare for a detailed and likely contentious negotiation over its core business practices in one of its most important markets, with the certainty that new, binding rules are on the horizon.