Google may be forced to make changes to how its search engine operates in the UK following a landmark decision by regulator the Competition and Markets Authority.

The CMA has designated Google with ‘strategic market status’, which means it may intervene in a ‘proportionate and targeted’ way to preserve competition in the market.

It expects to begin a consultation on any possible changes this year.

Google responded with a warning and claimed that UK businesses and consumers have been amongst the first to benefit from Google’s innovations, often months before their European counterparts.

“As a result, they see significant value: Google Search contributes billions of pounds a year to the UK economy — £118 billion in 2023 alone,” it stated.

“The UK enjoys access to the latest products and services before other countries because it has so far avoided costly restrictions on popular services, such as Search. Retaining this position means avoiding unduly onerous regulations and learning from the negative results seen in other jurisdictions, which have cost businesses an estimated €114bn.

“Many of the ideas for interventions that have been raised in this process would inhibit UK innovation and growth, potentially slowing product launches at a time of profound AI-based innovation. Others pose direct harm to businesses, with some warning that they may be forced to raise prices for customers.

“Google supports the CMA’s goal to ensure the UK’s competition framework mirrors the best interests of UK consumers and businesses. We hope to see outcomes that reflect such ambitions in the crucial months ahead.”