Britain’s Competition and Markets Authority (CMA) formally designated Google with “strategic market status” (SMS) in online search on Friday. This is the first time the United Kingdom (UK) has exercised its new powers to tackle the dominance of major technology firms.
This significant move paves the way for the CMA to use tailored regulatory interventions to compel the Alphabet-owned company to change its operating practices within the British search market.
“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,” the CMA’s Executive Director for Digital Markets Will Hayter said in a statement.
The watchdog clarified that the SMS designation does not constitute a finding of wrongdoing and does not introduce any immediate requirements for Google.
Google’s Senior Director for Competition Oliver Bethell said: “Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation.”
Equipped with direct enforcement powers and the ability to impose fines for non-compliance, the CMA has stated its future actions will be “targeted and proportionate”.
The regulator’s ultimate objective is to unlock innovation across the British technology sector and the wider economy, with previously proposed measures including ensuring fairer ranking principles in search results and offering consumers more accessible alternatives.
Google’s Play Store monopoly: US Supreme Court refuses to grant delay
Google is now facing an immediate, sweeping overhaul of its Android app store after the US Supreme Court refused on Monday to grant protection against a year-old order. This curt, one-sentence decision means Google will shortly have to begin making significant structural changes to the Play Store, a system which a jury previously declared an illegal monopoly designed to stifle competition.
The ruling effectively upholds a December 2023 jury verdict and compels the Mountain View, California, company to loosen its restrictive control over the Play Store—the distribution channel for apps on the Android software that powers the majority of non-Apple smartphones in the United States.
Among the immediate changes mandated by US District Judge James Donato last October, Google must allow rival app stores to access its entire inventory of Android applications. Furthermore, the company is required to make these alternative download options readily available to users directly from the Play Store itself.
Google had been seeking a stay from the Supreme Court while it prepared a final attempt to overturn the original monopoly verdict. In a recent filing, the firm warned the court that Judge Donato’s order would expose the Play Store’s 100 million-plus US users to “enormous security and safety risks” by allowing alternative stores stocking “malicious, deceptive, or pirated content” to proliferate.
The technology firm confirmed it would comply with the forthcoming 22nd October deadline to begin implementing the changes. However, Google indicated it would continue its legal challenge against what it deems a problematic order, stating: “The changes ordered by the U.S. District Court will jeopardise users’ ability to safely download apps.”