Regulator targets Google’s dominance as £7bn claim moves forward

Competition watchdog to rein in Google’s control of search and advertising as a class action lawsuit over inflated consumer prices progresses.

The UK’s competition watchdog is preparing to rein in Google’s dominance over internet search, using new powers that could force sweeping changes to how the tech giant operates.

The Competition and Markets Authority (CMA) is consulting on its proposed decision to designate Google with ‘strategic market status’ (SMS) – a move that would empower it to introduce new rules and interventions under the Digital Markets Competition Regime, which came into force in January 2025.

Sarah Cardell, chief executive of the CMA, said:

“Search and Search Advertising are critical for UK consumers and businesses, so it’s vital that effective competition delivers good outcomes. These measures could help unlock broader growth, investment and innovation in the UK tech sector and beyond.”

Register for updates on this and my £7 billion collective action lawsuit against Google.

Why is Google under scrutiny?

Google accounts for over 90% of all general search queries in the UK, making it the primary gateway to the internet for millions of people. It is also the go-to advertising channel for over 200,000 UK businesses, who collectively spent more than £10 billion on Google search ads last year – an average of £33,000 per advertiser.

Through its investigation, the CMA has raised serious concerns about:

• High advertising costs in a market lacking genuine competition
• Opaque ranking systems for search results, giving Google disproportionate control
• Exclusive deals with Apple and Samsung that limit visibility for rivals
• Limited control for publishers over how their content appears in search and AI results
• Barriers to innovation, with users unable to easily transfer search data to new services

The CMA believes that Google’s dominance meets the legal threshold for “strategic market status,” triggering potential regulatory action to restore fairer conditions.

Linked lawsuit: £7 billion collective claim on behalf of UK consumers

Separate from the CMA’s action, I am fronting a £7 billion collective action lawsuit against Google over its alleged abuse of dominance in mobile search. 

The claim accuses Google of anti-competitive practices that have led to almost everyone in the UK paying more for goods and services than they would in a competitive market. 

I’m working with Hausfeld law firm to argue that: 

• Google forced mobile phone manufacturers using its Android operating system to pre-install Google Search and Chrome, in exchange for access to Google Play.
• Google paid billions to Apple to remain the default search engine on iOS devices.
• These behaviours allowed Google to shut out competition, overcharge advertisers, and inflate prices for consumers indirectly – impacting up to 65 million UK consumers.

If successful, the claim seeks to return around £100 to each eligible consumer who lived in the UK on 22 November 2024 and bought goods or services from businesses that advertised via Google Search between 1 January 2011 and 7 September 2023.

You do not need to have clicked on or seen a Google ad to be eligible. If you bought something from a business that advertised using Google Search – like supermarkets, banks, or broadband providers – you’re likely included.

You will be automatically part of the claim unless you opted out via my claim website before 18 March 2025.

What might the CMA force Google to change?

If the regulator confirms Google’s SMS status by 13 October 2025, the CMA could introduce sweeping changes to the way Google operates in the UK. A roadmap of potential interventions has been published, grouped into three categories:

Early actions (from late 2025)

Likely first steps include:

• Choice screens: Giving users the option to easily switch search engines – including AI-based ones
• Fair ranking rules: Making search result rankings more transparent and unbiased
• Publisher control: Giving media outlets more transparency and consent over how content is used in AI results and search
• Data portability: Letting consumers transfer their search data to alternative services
  

“The measures in the roadmap have two objectives,” Cardell said. “First, to ensure consumers and businesses are treated fairly… Second, to promote competition and innovation… such as ensuring that all firms, including Google, can compete and innovate in new AI-based search interfaces.”

Longer-term measures (from 2026)

More complex issues under review include:

• Google’s bargaining power over publishers
• How it treats rival search platforms
• Lack of transparency in search advertising

Deferred considerations

These include proposals around search data access and default search contracts, which may evolve depending on developments in international legal cases, like the US Department of Justice lawsuit against Google.

What about AI in search?

The CMA is paying close attention to how generative AI is transforming search. While AI assistants are gaining popularity, Google search still dominates.

Features like AI Overviews, now embedded into search, fall under the scope of the CMA’s proposed regulation. Google’s Gemini AI Assistant, for now, is excluded but remains under review.

Google has expressed concern

Google has expressed concern about the CMA’s proposals:

Oliver Bethell, Google’s Senior Director of Competition, said:
“The CMA has reiterated that SMS does not imply anti-competitive behaviour… yet this announcement presents clear challenges. Punitive regulations could change how we bring our latest innovations to the UK.”

Google has pledged to work with the regulator but argued that the current scope may be “broad and unfocused.”

Why this matters for you

Whether through regulatory action or collective legal claims, the outcome of these challenges could:

• Put money back in your pocket if you’re eligible for compensation
• Lower prices by restoring competition in digital advertising
• Give you more control over the services and platforms you use
• Foster innovation by opening the market to challengers and new technologies

Sign up to stay updated on the CMA’s final decision on Google’s market status and on the progress of my £7 billion consumer claim against Google.