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Investing.com -- The UK’s Competition and Markets Authority (CMA) has officially designated Alphabet Inc’s (NASDAQ:GOOGL) Google with strategic market status (SMS) in general search and search advertising services.
The decision, announced Friday, follows an extensive consultation process that began in January when the UK’s new digital markets competition regime came into force.
The CMA confirmed that Google maintains "substantial and entrenched market power" in search, with more than 90% of UK searches taking place on its platform.
While Google’s Gemini AI assistant was excluded from the designation, other AI-based search features like AI Overviews and AI Mode remain in scope. The regulator also clarified that Google’s Discover feed and Top Stories are included, but the separate Google News app and website are not.
Will Hayter, Executive Director for Digital Markets at the CMA, stated: "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."
The designation does not constitute a finding of wrongdoing or introduce immediate requirements. However, it enables the CMA to consider targeted interventions to ensure search services remain open to effective competition.
The regulator expects to begin consulting on possible interventions later this year, joining other jurisdictions including the US, EU, and Japan in taking regulatory action in the search sector.