The U.K.’s Competition and Markets Authority may label Google under Strategic Market Status, aiming to boost search competition, transparency, and innovation amid concerns over its dominance.

Google may soon face increased regulatory scrutiny in the U.K. as the Competition and Markets Authority (CMA) considers labeling the tech giant with Strategic Market Status (SMS) under the country’s Digital Markets Competition Regime.

Google parent Alphabet’s stock (GOOGL/GOOG) edged 0.8% lower during pre-market trade on Tuesday. 

The watchdog released a roadmap outlining preliminary actions that could follow if the designation is confirmed in October. 

These steps aim to encourage fairer competition in search services and enhance transparency and user choice in the U.K.’s digital economy.

Google dominates over 90% of general web searches in the U.K., providing a vital pathway to online services for consumers and a primary advertising channel for more than 200,000 U.K. businesses. 

This vast reach and control have prompted mounting concerns about the tech giant’s market power and potential barriers to competition.

Stakeholders have raised multiple issues, including Google's overwhelming data advantage, limited transparency in search result rankings, and challenges faced by publishers regarding how their content is utilized in both search listings and AI-generated features. 

If the SMS designation is approved, the CMA could introduce several measures. These include mandating choice screens that let users select alternative search providers.

Future actions could address more complex issues, such as Google’s bargaining dynamics with publishers and its handling of niche search engines and advertising practices.

“Google search has delivered tremendous benefits – but our investigation so far suggests there are ways to make these markets more open, competitive and innovative,” said Chief Executive of the CMA, Sarah Cardell.

A final determination on Google’s SMS status is expected by October 13.

On Stocktwits, retail sentiment toward Alphabet improved to ‘neutral’ from ‘bearish’ the previous day, with ‘high’ message volume.

GOOGL's Sentiment Meter and Message Volume as of 07.15 a.m. ET on Jun.24, 2025 | Source: Stocktwits

Alphabet’s stock has lost over 12% in 2025 and over 7% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<