On July 11, 2025, the UK Competition and Markets Authority (CMA) published a set of documents evaluating competition in core markets like search engines and housebuilding. These include the Proposed Decision, and supporting annexes on Market Outcomes and Profitability Analysis.
Below are the major findings from these documents,
TL;DR:
The UK’s Competition and Markets Authority (CMA) has flagged serious concerns about Google and Meta’s dominance in the digital advertising market. Together, they control over 80% of ad spend in search and social, making it harder for rivals to compete and for advertisers to get fair pricing or transparent data. The CMA’s findings raise big questions about fairness, competition, and the future of digital marketing.
Is Google Too Dominant in Search?
Yes. The CMA finds that Google holds entrenched, strategic market power in the UK search market and proposes designating it as a Strategic Market Status (SMS) firm.
Key Findings:
- Google accounts for over 90% of UK general search queries. “Google Search accounts for more than 90% of all general search queries in the UK…”
- Its share on mobile is even higher—up to 97%. “Google’s share of mobile general search queries is even higher, reaching 97% during certain periods.”
- Barriers to entry are high: “Barriers that competitors face … include Google’s distribution agreements, data advantages and scale in search advertising.”
The CMA concludes:
“Google possesses substantial and entrenched market power and a position of strategic significance in general search services in the UK.”
What’s next?
A public consultation is underway. A final SMS designation decision is expected by October 2025, allowing for conduct requirements and other interventions.
Can AI Assistants Compete with Google?
Not yet. Despite the rise of generative AI, the CMA sees no material challenge to Google from tools like ChatGPT, Gemini, or Perplexity.
“Use of AI assistants is currently very low when compared to Google’s general search products… Google is also well‑positioned to ensure that AI assistants do not develop into a more sustained and significant competitive constraint.”
Takeaway: Google’s market position is unlikely to be eroded by AI in the next 3–5 years.
Is Meta Still Dominating Social Media?
Yes. In social media, Meta (Facebook, Instagram) continues to command over 70% of user time in the UK.
Key Highlights:
- “Meta accounted for over 70% of user time spent on social media platforms in the UK.”
- New entrants haven’t changed the landscape: “The overall pattern of market outcomes remains stable despite new platform launches.”
- TikTok is growing, but ad spend and overall time spent still trail Meta significantly.
Implication: Meta remains the primary gatekeeper for social engagement and display advertising.
What Does This Mean for Digital Marketers?
- Expect more scrutiny on ad tech ecosystems, particularly search and display advertising.
- Google may face new limitations on bundling, data collection, and ad auction behavior.
- Meta’s dominance may invite future interventions aimed at creating space for emerging platforms.
- Diversification will be key — brands should explore alternative channels while monitoring how regulation evolves.
What’s the CMA Planning to Do About It?
For Google:
- Finalize SMS designation by October 2025
- Follow with potential conduct requirements or pro-competition interventions
For Social & Digital Ads:
- Continue investigations under the Digital Markets Unit (DMU) framework
- Explore remedies to reduce barriers for smaller platforms and advertisers
Final Thought
The CMA’s findings make it clear:
Digital advertising is no longer a level playing field.
With Google and Meta holding near-total control of key user pathways, marketers must be aware not just of platform performance — but also of the regulatory winds that may reshape the future of search and social.
Source Documents:
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