The UK’s competition watchdog has taken its first step towards designating Google as a company with strategic market status, using new legal powers that target entrenched dominance in digital markets. The Competition and Markets Authority announced on Monday that it believes Google’s core services in search, search advertising and display advertising meet the threshold for intervention under the Digital Markets, Competition and Consumers Act. The act came into force in May 2024 and allows the CMA to impose legally binding obligations on firms with significant, entrenched market power and a position of strategic importance. A final decision is expected by October following an eight-week consultation. The proposed designation would require Google to follow a set of specific conduct requirements laid out by the CMA. These include limits on self-preferencing in search results, requirements for greater transparency in advertising practices and obligations to ensure that rivals can interoperate with its platforms. The CMA said Google’s dominance gives it the ability to exploit its position across multiple services, harming competition and making it harder for smaller companies to enter the market or grow. Failing to comply with the new rules could result in fines of up to ten percent of global turnover. Google has responded by saying it will cooperate with the regulator but warned that its services deliver benefits to consumers and advertisers. A spokesperson said the company was reviewing the consultation documents and looked forward to working with the CMA to ensure the final outcome supports innovation and choice. The company has previously argued that competition in digital markets remains strong and that the search ecosystem is constantly evolving with the arrival of new platforms. The CMA’s Digital Markets Unit will have the authority to supervise Google directly if the designation is confirmed. That includes the ability to issue directions, launch investigations into non-compliance and introduce pro-competition interventions without needing to prove harm on a case-by-case basis. The government has positioned the regime as a tool to ensure fairer markets and faster responses to digital problems than traditional competition law allows. Alongside Google, the regulator is also assessing whether Apple, Amazon, Meta and Microsoft meet the criteria for similar designations. The act allows the CMA to review the designation every five years or sooner if market conditions change. The current move marks the first use of the new powers and is seen as a test case for the broader regulatory framework. Industry groups and consumer rights organisations have long pressed for stricter oversight of large digital platforms, citing concerns over data collection practices, advertising opacity and the ability of dominant players to favour their own services....