Google's latest clash with CMA exposes the UK's ongoing weak approach to Big Tech

Earlier this week the Competition and Markets Authority — the UK’s chief competition regulator — published a proposed decision to designate Google as having “Strategic Market Status” (SMS) along with a roadmap of possible measures to improve competition in the market. 

The proposed decision prompted clashes with the tech giant — which described the move as “punitive regulation” — adding it could stop Google from bringing new features and services into Britain. 

Yet others have said UK regulators should use more powerful tools at its disposal under the Digital Markets, Competition and Consumer Act 2024 (DMCC) to open search competition. 

The Balanced Economy Project agrees with other commentators that the decision seems to have been influenced by the government’s recent strategic steer to align with U.S. AI interests, not a regulatory agenda that protects public and other businesses interests and restore competition.

Regulators like the CMA should be breaking up the powerful Big Tech companies, like Google, that have a stranglehold over our digital world, not waiting to see how they respond to timid behavioural remedies.

It has now been five years since the market study report and three years after the CMA/Ofcom report on payment for content, and it is disappointing to see that these issues still require “further consideration,” which simply emboldens Big Tech in its response to regulatory challenge.