Google may soon be forced to overhaul how it delivers search results and sells advertising in the UK, following a major move by the UK’s Competition and Markets Authority (CMA) under tough new digital market laws.

The CMA is proposing to give Google ‘Strategic Market Status’ (SMS), a classification that would enforce rules to limit its dominance in search and advertising.

If finalised by October 13, the move would force Google to make sweeping changes.

These could include offering users “choice screens” to select rival search engines, enforcing “fair ranking” of competitors’ services in search results, and increasing transparency around how publisher content is used, especially in AI-generated results.

The CMA’s probe, launched in January, raised concerns that Google’s dominance, which is over 90% market share in UK search, has inflated ad prices, limited competition, and constrained publisher control. UK businesses reportedly spend over £33,000 (A$69,200) annually on Google search ads.

CMA chief executive Sarah Cardell said the proposed rules would help make the digital ecosystem “more open, competitive and innovative.” The watchdog is also weighing similar action against Apple and Google’s control over mobile platforms and services.

Google hit back, labelling the proposals “broad and unfocused,” warning they could delay UK access to new innovations.

“Punitive regulation could become a roadblock to growth,” said Oliver Bethell, Google’s competition lead.

Australia is closely watching developments in Europe and the UK as it considers its own regulation of digital platforms. The ACCC has long argued for more scrutiny of how big tech firms dominate search, advertising, and content access, especially as AI features, like Google’s AI Overviews, become more central.

With similar antitrust battles unfolding in the EU and US, the CMA’s proposed move could set a global precedent for regulating Big Tech’s AI-powered future.