TL;DR:<\/strong><\/h3>\n\n\n\nThe UK\u2019s 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\u2019s findings raise big questions about fairness, competition, and the future of digital marketing.<\/p>\n\n\n\n
<\/div>\n\n\n\nIs Google Too Dominant in Search?<\/strong><\/h2>\n\n\n\nYes. 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.<\/p>\n\n\n\n
<\/div>\n\n\n\n(SMS<\/strong> stands for Strategic Market Status<\/strong>. It refers to a legal designation under the UK’s Digital Markets, Competition and Consumers Bill for firms that have substantial and entrenched market power<\/strong> and a position of strategic significance<\/strong> in a digital activity in the UK. If a firm (like Google or Meta) is designated with SMS, it becomes subject to stricter conduct requirements<\/strong> to promote fair competition and prevent abusive behavior.<\/em>)<\/p>\n\n\n\n<\/div>\n\n\n\nKey Findings:<\/strong><\/h4>\n\n\n\n\n- Dominant Presence Across Platforms<\/strong> \n
\n- Google commands more than 90% of the UK\u2019s general search traffic, firmly establishing itself as the primary gateway to online discovery.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Mobile Supremacy<\/strong>\n
\n- On mobile devices, Google\u2019s grip is even tighter \u2014 capturing up to 97% of mobile search queries<\/strong> during peak periods. This mobile-first dominance is reshaping how users access information and how advertisers reach them.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- High Barriers for New Entrants<\/strong>\n
\n- Competing search engines face formidable challenges, from Google\u2019s powerful distribution partnerships<\/strong> and vast data reserves<\/strong> to its economies of scale in search ad monetization<\/strong>. These factors make market disruption extremely difficult.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
The following graph shows a steep rise in monthly UK search queries on Google from 2017 to 2024 \u2014 a growth of nearly 60%. This underscores the platform\u2019s increasing centrality in user behavior<\/p>\n\n\n
\n![\"\"](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/07\/image-6.png\")
<\/a><\/figure><\/div>\n\n\n<\/div>\n\n\n\nLooking at the below graph, its revealed that Google\u2019s mobile search share reaching 97%<\/strong> during peak periods \u2014 underscoring its dominance on mobile devices.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/07\/image-8.png\")
<\/a><\/figure><\/div>\n\n\n<\/div>\n\n\n\n\n\u201cGoogle\u2019s share of mobile general search queries is even higher, reaching 97% during certain periods.\u201d \u2014 CMA Proposed Decision<\/em><\/p>\n<\/blockquote>\n\n\n\n<\/div>\n\n\n\nThe CMA concludes:<\/p>\n\n\n\n
\n\u201cGoogle possesses substantial and entrenched market power and a position of strategic significance in general search services in the UK.\u201d<\/p>\n<\/blockquote>\n\n\n\n
<\/div>\n\n\n\nWhat\u2019s next?
<\/strong>A public consultation is underway. A final SMS designation decision is expected by October 2025, allowing for conduct requirements and other interventions.<\/p>\n\n\n\n<\/div>\n\n\n\nProfits Without Pressure: Why Google\u2019s Margins Matter?<\/strong><\/h2>\n\n\n\nThe below graph shows Google\u2019s revenue and operating profit (EBIT) from search services between 2022 and 2024 \u2014 both consistently high. Based on these, the CMA estimates Google earns over 40% return<\/strong> on the capital it invests in search.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/07\/image-7.png\")
<\/a><\/figure><\/div>\n\n\n\n\u201cOur estimate of Google\u2019s return on capital from its general search services\u2026 is higher than 40%, using a sensitivity-based analysis.\u201d – Annex C, para C.6<\/em><\/p>\n<\/blockquote>\n\n\n\n<\/div>\n\n\n\nThis return is well above Google\u2019s cost of capital<\/strong>, which the CMA estimates at 10\u201315%<\/strong>. In plain terms: Google doesn\u2019t just profit \u2014 it profits without competitive pressure<\/strong>.<\/p>\n\n\n\n<\/div>\n\n\n\nBarriers to Entry: Why Rivals Struggle?<\/strong><\/h2>\n\n\n\n\n\u201cBarriers that competitors face \u2026 include Google\u2019s distribution agreements, data advantages and scale in search advertising.\u201d \u2014 CMA Proposed Decision<\/em><\/p>\n<\/blockquote>\n\n\n\nGoogle\u2019s default placement on browsers and devices (via deals with Apple, Samsung, etc.), massive data advantage that fuels better ad targeting, and Ad tech scale, outperforms smaller players, making it difficult for alternatives to gain visibility, no matter how innovative or differentiated they are.<\/p>\n\n\n\n
<\/div>\n\n\n\nCan AI Assistants Compete with Google?<\/strong><\/h2>\n\n\n\nNot yet.<\/strong> Despite the rise of generative AI, the CMA sees no material challenge to Google from tools like ChatGPT, Gemini, or Perplexity.<\/p>\n\n\n\n<\/div>\n\n\n\n\n\u201cUse of AI assistants is currently very low when compared to Google\u2019s general search products\u2026 Google is also well\u2011positioned to ensure that AI assistants do not develop into a more sustained and significant competitive constraint.\u201d – CMA Proposed Decision<\/p>\n<\/blockquote>\n\n\n\n
<\/div>\n\n\n\nTakeaway<\/strong>: Google\u2019s market position is unlikely to be eroded by AI<\/strong> in the next 3\u20135 years. Despite the rise of ChatGPT, Gemini, and Perplexity, the CMA finds that AI tools are not yet disrupting Google\u2019s dominance in search.<\/p>\n\n\n\n<\/div>\n\n\n\nIs Meta Still Dominating Social Media?<\/strong><\/h2>\n\n\n\n<\/div>\n\n\n\n\n\u201cMeta accounted for over 70% of user time spent on social media platforms in the UK.\u201d<\/p>\n<\/blockquote>\n\n\n\n
<\/div>\n\n\n\nKey Highlights:<\/strong><\/h4>\n\n\n\n\n- Meta\u2019s platforms (Facebook, Instagram) remain the primary gateways for social engagement and display advertising<\/strong>.<\/li>\n\n\n\n
- New entrants haven\u2019t changed the landscape: \u201cThe overall pattern of market outcomes remains stable despite new platform launches.\u201d<\/li>\n\n\n\n
- TikTok is growing, but ad spend and overall time spent still trail Meta significantly.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Implication<\/strong>: Meta remains the primary gatekeeper<\/strong> for social engagement and display advertising.<\/p>\n\n\n\n<\/div>\n\n\n\nWhat Does This Mean for Digital Marketers?<\/strong><\/h2>\n\n\n\n\n- Expect more scrutiny on ad tech ecosystems<\/strong>, particularly search and display advertising<\/strong>.<\/li>\n\n\n\n
- Google may face new limitations on bundling, data collection, and ad auction behavior<\/strong>.<\/li>\n\n\n\n
- Meta\u2019s dominance may invite future interventions<\/strong> aimed at creating space for emerging platforms.<\/li>\n\n\n\n
- Diversification will be key<\/strong> \u2014 brands should explore alternative channels while monitoring how regulation evolves.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Additional Key Findings<\/strong><\/h2>\n\n\n\n\n- Opaque Ad Auctions<\/strong>: Advertisers lack visibility into how Google ranks and prices bids \u2014 a concern flagged by the CMA.<\/li>\n\n\n\n
- Data Access Asymmetry<\/strong>: Google and Meta\u2019s vast data ecosystems give them a competitive edge in targeting and attribution<\/strong>.<\/li>\n\n\n\n
- Stable Market Outcomes<\/strong>: Even with new platforms, Google and Meta\u2019s dominance remains structurally intact<\/strong>.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
What\u2019s the CMA Planning to Do About It?<\/strong><\/h2>\n\n\n\nFor Google:<\/strong><\/h4>\n\n\n\n\n- Finalize SMS designation by October 2025<\/li>\n\n\n\n
- Follow with potential conduct requirements or pro-competition interventions<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
For Social & Digital Ads:<\/strong><\/h4>\n\n\n\n\n- Continue investigations under the Digital Markets Unit (DMU)<\/strong> framework<\/li>\n\n\n\n
- Explore remedies to reduce barriers for smaller platforms and advertisers<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Final Thought<\/strong><\/h2>\n\n\n\nThe CMA\u2019s findings make it clear:<\/p>\n\n\n\n
<\/div>\n\n\n\n\n\nDigital advertising is no longer a level playing field.<\/strong><\/p>\n<\/blockquote>\n<\/blockquote>\n\n\n\n<\/div>\n\n\n\nWith Google and Meta holding near-total control of key user pathways<\/strong>, marketers must be aware not just of platform performance \u2014 but also of the regulatory winds that may reshape the future of search and social<\/strong>.<\/p>\n\n\n\n<\/div>\n\n\n\n![\"\"](\"https:\/\/www.karooya.com\/blog\/wp-content\/uploads\/2025\/07\/image-5-683x1024.png\")
<\/a><\/figure><\/div>\n\n\n<\/div>\n\n\n\nIs Google too powerful for its own good? Or do its profits reflect user value?<\/strong>
Drop your thoughts in the comments \u2014 let\u2019s unpack what real competition in search might look like.<\/p>\n\n\n\nSource<\/strong> Documents<\/strong>:<\/p>\n\n\n\n\n- Proposed Decision (PDF)<\/a><\/li>\n\n\n\n
- Annex B \u2013 Market Outcomes<\/a><\/li>\n\n\n\n
- Annex C \u2013 Profitability Analysis<\/a><\/li>\n<\/ul>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-26279","post","type-post","status-publish","format-standard","hentry","category-googl-search-tips"],"featured_image_src":null,"author_info":{"display_name":"Kirti","author_link":"https:\/\/www.karooya.com\/blog\/author\/kirti\/"},"_links":{"self":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/comments?post=26279"}],"version-history":[{"count":18,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279\/revisions"}],"predecessor-version":[{"id":26432,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279\/revisions\/26432"}],"wp:attachment":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/media?parent=26279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/categories?post=26279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/tags?post=26279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Is Google Too Dominant in Search?<\/strong><\/h2>\n\n\n\nYes. 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.<\/p>\n\n\n\n
<\/div>\n\n\n\n(SMS<\/strong> stands for Strategic Market Status<\/strong>. It refers to a legal designation under the UK’s Digital Markets, Competition and Consumers Bill for firms that have substantial and entrenched market power<\/strong> and a position of strategic significance<\/strong> in a digital activity in the UK. If a firm (like Google or Meta) is designated with SMS, it becomes subject to stricter conduct requirements<\/strong> to promote fair competition and prevent abusive behavior.<\/em>)<\/p>\n\n\n\n<\/div>\n\n\n\nKey Findings:<\/strong><\/h4>\n\n\n\n\n- Dominant Presence Across Platforms<\/strong> \n
\n- Google commands more than 90% of the UK\u2019s general search traffic, firmly establishing itself as the primary gateway to online discovery.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- Mobile Supremacy<\/strong>\n
\n- On mobile devices, Google\u2019s grip is even tighter \u2014 capturing up to 97% of mobile search queries<\/strong> during peak periods. This mobile-first dominance is reshaping how users access information and how advertisers reach them.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
- High Barriers for New Entrants<\/strong>\n
\n- Competing search engines face formidable challenges, from Google\u2019s powerful distribution partnerships<\/strong> and vast data reserves<\/strong> to its economies of scale in search ad monetization<\/strong>. These factors make market disruption extremely difficult.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
The following graph shows a steep rise in monthly UK search queries on Google from 2017 to 2024 \u2014 a growth of nearly 60%. This underscores the platform\u2019s increasing centrality in user behavior<\/p>\n\n\n
\n<\/a><\/figure><\/div>\n\n\n<\/div>\n\n\n\nLooking at the below graph, its revealed that Google\u2019s mobile search share reaching 97%<\/strong> during peak periods \u2014 underscoring its dominance on mobile devices.<\/p>\n\n\n\n<\/a><\/figure><\/div>\n\n\n<\/div>\n\n\n\n\n\u201cGoogle\u2019s share of mobile general search queries is even higher, reaching 97% during certain periods.\u201d \u2014 CMA Proposed Decision<\/em><\/p>\n<\/blockquote>\n\n\n\n<\/div>\n\n\n\nThe CMA concludes:<\/p>\n\n\n\n
\n\u201cGoogle possesses substantial and entrenched market power and a position of strategic significance in general search services in the UK.\u201d<\/p>\n<\/blockquote>\n\n\n\n
<\/div>\n\n\n\nWhat\u2019s next?
<\/strong>A public consultation is underway. A final SMS designation decision is expected by October 2025, allowing for conduct requirements and other interventions.<\/p>\n\n\n\n<\/div>\n\n\n\nProfits Without Pressure: Why Google\u2019s Margins Matter?<\/strong><\/h2>\n\n\n\nThe below graph shows Google\u2019s revenue and operating profit (EBIT) from search services between 2022 and 2024 \u2014 both consistently high. Based on these, the CMA estimates Google earns over 40% return<\/strong> on the capital it invests in search.<\/p>\n\n\n\n<\/a><\/figure><\/div>\n\n\n\n\u201cOur estimate of Google\u2019s return on capital from its general search services\u2026 is higher than 40%, using a sensitivity-based analysis.\u201d – Annex C, para C.6<\/em><\/p>\n<\/blockquote>\n\n\n\n<\/div>\n\n\n\nThis return is well above Google\u2019s cost of capital<\/strong>, which the CMA estimates at 10\u201315%<\/strong>. In plain terms: Google doesn\u2019t just profit \u2014 it profits without competitive pressure<\/strong>.<\/p>\n\n\n\n<\/div>\n\n\n\nBarriers to Entry: Why Rivals Struggle?<\/strong><\/h2>\n\n\n\n\n\u201cBarriers that competitors face \u2026 include Google\u2019s distribution agreements, data advantages and scale in search advertising.\u201d \u2014 CMA Proposed Decision<\/em><\/p>\n<\/blockquote>\n\n\n\nGoogle\u2019s default placement on browsers and devices (via deals with Apple, Samsung, etc.), massive data advantage that fuels better ad targeting, and Ad tech scale, outperforms smaller players, making it difficult for alternatives to gain visibility, no matter how innovative or differentiated they are.<\/p>\n\n\n\n
<\/div>\n\n\n\nCan AI Assistants Compete with Google?<\/strong><\/h2>\n\n\n\nNot yet.<\/strong> Despite the rise of generative AI, the CMA sees no material challenge to Google from tools like ChatGPT, Gemini, or Perplexity.<\/p>\n\n\n\n<\/div>\n\n\n\n\n\u201cUse of AI assistants is currently very low when compared to Google\u2019s general search products\u2026 Google is also well\u2011positioned to ensure that AI assistants do not develop into a more sustained and significant competitive constraint.\u201d – CMA Proposed Decision<\/p>\n<\/blockquote>\n\n\n\n
<\/div>\n\n\n\nTakeaway<\/strong>: Google\u2019s market position is unlikely to be eroded by AI<\/strong> in the next 3\u20135 years. Despite the rise of ChatGPT, Gemini, and Perplexity, the CMA finds that AI tools are not yet disrupting Google\u2019s dominance in search.<\/p>\n\n\n\n<\/div>\n\n\n\nIs Meta Still Dominating Social Media?<\/strong><\/h2>\n\n\n\n<\/div>\n\n\n\n\n\u201cMeta accounted for over 70% of user time spent on social media platforms in the UK.\u201d<\/p>\n<\/blockquote>\n\n\n\n
<\/div>\n\n\n\nKey Highlights:<\/strong><\/h4>\n\n\n\n\n- Meta\u2019s platforms (Facebook, Instagram) remain the primary gateways for social engagement and display advertising<\/strong>.<\/li>\n\n\n\n
- New entrants haven\u2019t changed the landscape: \u201cThe overall pattern of market outcomes remains stable despite new platform launches.\u201d<\/li>\n\n\n\n
- TikTok is growing, but ad spend and overall time spent still trail Meta significantly.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Implication<\/strong>: Meta remains the primary gatekeeper<\/strong> for social engagement and display advertising.<\/p>\n\n\n\n<\/div>\n\n\n\nWhat Does This Mean for Digital Marketers?<\/strong><\/h2>\n\n\n\n\n- Expect more scrutiny on ad tech ecosystems<\/strong>, particularly search and display advertising<\/strong>.<\/li>\n\n\n\n
- Google may face new limitations on bundling, data collection, and ad auction behavior<\/strong>.<\/li>\n\n\n\n
- Meta\u2019s dominance may invite future interventions<\/strong> aimed at creating space for emerging platforms.<\/li>\n\n\n\n
- Diversification will be key<\/strong> \u2014 brands should explore alternative channels while monitoring how regulation evolves.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Additional Key Findings<\/strong><\/h2>\n\n\n\n\n- Opaque Ad Auctions<\/strong>: Advertisers lack visibility into how Google ranks and prices bids \u2014 a concern flagged by the CMA.<\/li>\n\n\n\n
- Data Access Asymmetry<\/strong>: Google and Meta\u2019s vast data ecosystems give them a competitive edge in targeting and attribution<\/strong>.<\/li>\n\n\n\n
- Stable Market Outcomes<\/strong>: Even with new platforms, Google and Meta\u2019s dominance remains structurally intact<\/strong>.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
What\u2019s the CMA Planning to Do About It?<\/strong><\/h2>\n\n\n\nFor Google:<\/strong><\/h4>\n\n\n\n\n- Finalize SMS designation by October 2025<\/li>\n\n\n\n
- Follow with potential conduct requirements or pro-competition interventions<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
For Social & Digital Ads:<\/strong><\/h4>\n\n\n\n\n- Continue investigations under the Digital Markets Unit (DMU)<\/strong> framework<\/li>\n\n\n\n
- Explore remedies to reduce barriers for smaller platforms and advertisers<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Final Thought<\/strong><\/h2>\n\n\n\nThe CMA\u2019s findings make it clear:<\/p>\n\n\n\n
<\/div>\n\n\n\n\n\nDigital advertising is no longer a level playing field.<\/strong><\/p>\n<\/blockquote>\n<\/blockquote>\n\n\n\n<\/div>\n\n\n\nWith Google and Meta holding near-total control of key user pathways<\/strong>, marketers must be aware not just of platform performance \u2014 but also of the regulatory winds that may reshape the future of search and social<\/strong>.<\/p>\n\n\n\n<\/div>\n\n\n\n<\/a><\/figure><\/div>\n\n\n<\/div>\n\n\n\nIs Google too powerful for its own good? Or do its profits reflect user value?<\/strong>
Drop your thoughts in the comments \u2014 let\u2019s unpack what real competition in search might look like.<\/p>\n\n\n\nSource<\/strong> Documents<\/strong>:<\/p>\n\n\n\n\n- Proposed Decision (PDF)<\/a><\/li>\n\n\n\n
- Annex B \u2013 Market Outcomes<\/a><\/li>\n\n\n\n
- Annex C \u2013 Profitability Analysis<\/a><\/li>\n<\/ul>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-26279","post","type-post","status-publish","format-standard","hentry","category-googl-search-tips"],"featured_image_src":null,"author_info":{"display_name":"Kirti","author_link":"https:\/\/www.karooya.com\/blog\/author\/kirti\/"},"_links":{"self":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/comments?post=26279"}],"version-history":[{"count":18,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279\/revisions"}],"predecessor-version":[{"id":26432,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279\/revisions\/26432"}],"wp:attachment":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/media?parent=26279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/categories?post=26279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/tags?post=26279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
(SMS<\/strong> stands for Strategic Market Status<\/strong>. It refers to a legal designation under the UK’s Digital Markets, Competition and Consumers Bill for firms that have substantial and entrenched market power<\/strong> and a position of strategic significance<\/strong> in a digital activity in the UK. If a firm (like Google or Meta) is designated with SMS, it becomes subject to stricter conduct requirements<\/strong> to promote fair competition and prevent abusive behavior.<\/em>)<\/p>\n\n\n\n The following graph shows a steep rise in monthly UK search queries on Google from 2017 to 2024 \u2014 a growth of nearly 60%. This underscores the platform\u2019s increasing centrality in user behavior<\/p>\n\n\n Looking at the below graph, its revealed that Google\u2019s mobile search share reaching 97%<\/strong> during peak periods \u2014 underscoring its dominance on mobile devices.<\/p>\n\n\n \u201cGoogle\u2019s share of mobile general search queries is even higher, reaching 97% during certain periods.\u201d \u2014 CMA Proposed Decision<\/em><\/p>\n<\/blockquote>\n\n\n\n The CMA concludes:<\/p>\n\n\n\n \u201cGoogle possesses substantial and entrenched market power and a position of strategic significance in general search services in the UK.\u201d<\/p>\n<\/blockquote>\n\n\n\n What\u2019s next? The below graph shows Google\u2019s revenue and operating profit (EBIT) from search services between 2022 and 2024 \u2014 both consistently high. Based on these, the CMA estimates Google earns over 40% return<\/strong> on the capital it invests in search.<\/p>\n\n\n \u201cOur estimate of Google\u2019s return on capital from its general search services\u2026 is higher than 40%, using a sensitivity-based analysis.\u201d – Annex C, para C.6<\/em><\/p>\n<\/blockquote>\n\n\n\n This return is well above Google\u2019s cost of capital<\/strong>, which the CMA estimates at 10\u201315%<\/strong>. In plain terms: Google doesn\u2019t just profit \u2014 it profits without competitive pressure<\/strong>.<\/p>\n\n\n\n \u201cBarriers that competitors face \u2026 include Google\u2019s distribution agreements, data advantages and scale in search advertising.\u201d \u2014 CMA Proposed Decision<\/em><\/p>\n<\/blockquote>\n\n\n\n Google\u2019s default placement on browsers and devices (via deals with Apple, Samsung, etc.), massive data advantage that fuels better ad targeting, and Ad tech scale, outperforms smaller players, making it difficult for alternatives to gain visibility, no matter how innovative or differentiated they are.<\/p>\n\n\n\n Not yet.<\/strong> Despite the rise of generative AI, the CMA sees no material challenge to Google from tools like ChatGPT, Gemini, or Perplexity.<\/p>\n\n\n\n \u201cUse of AI assistants is currently very low when compared to Google\u2019s general search products\u2026 Google is also well\u2011positioned to ensure that AI assistants do not develop into a more sustained and significant competitive constraint.\u201d – CMA Proposed Decision<\/p>\n<\/blockquote>\n\n\n\n Takeaway<\/strong>: Google\u2019s market position is unlikely to be eroded by AI<\/strong> in the next 3\u20135 years. Despite the rise of ChatGPT, Gemini, and Perplexity, the CMA finds that AI tools are not yet disrupting Google\u2019s dominance in search.<\/p>\n\n\n\n \u201cMeta accounted for over 70% of user time spent on social media platforms in the UK.\u201d<\/p>\n<\/blockquote>\n\n\n\n Implication<\/strong>: Meta remains the primary gatekeeper<\/strong> for social engagement and display advertising.<\/p>\n\n\n\n The CMA\u2019s findings make it clear:<\/p>\n\n\n\n Digital advertising is no longer a level playing field.<\/strong><\/p>\n<\/blockquote>\n<\/blockquote>\n\n\n\n With Google and Meta holding near-total control of key user pathways<\/strong>, marketers must be aware not just of platform performance \u2014 but also of the regulatory winds that may reshape the future of search and social<\/strong>.<\/p>\n\n\n\n Is Google too powerful for its own good? Or do its profits reflect user value?<\/strong> Source<\/strong> Documents<\/strong>:<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" 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.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-26279","post","type-post","status-publish","format-standard","hentry","category-googl-search-tips"],"featured_image_src":null,"author_info":{"display_name":"Kirti","author_link":"https:\/\/www.karooya.com\/blog\/author\/kirti\/"},"_links":{"self":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/comments?post=26279"}],"version-history":[{"count":18,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279\/revisions"}],"predecessor-version":[{"id":26432,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/posts\/26279\/revisions\/26432"}],"wp:attachment":[{"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/media?parent=26279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/categories?post=26279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karooya.com\/blog\/wp-json\/wp\/v2\/tags?post=26279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Key Findings:<\/strong><\/h4>\n\n\n\n
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<\/strong>A public consultation is underway. A final SMS designation decision is expected by October 2025, allowing for conduct requirements and other interventions.<\/p>\n\n\n\nProfits Without Pressure: Why Google\u2019s Margins Matter?<\/strong><\/h2>\n\n\n\n
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Barriers to Entry: Why Rivals Struggle?<\/strong><\/h2>\n\n\n\n
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Can AI Assistants Compete with Google?<\/strong><\/h2>\n\n\n\n
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Is Meta Still Dominating Social Media?<\/strong><\/h2>\n\n\n\n
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Key Highlights:<\/strong><\/h4>\n\n\n\n
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What Does This Mean for Digital Marketers?<\/strong><\/h2>\n\n\n\n
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Additional Key Findings<\/strong><\/h2>\n\n\n\n
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What\u2019s the CMA Planning to Do About It?<\/strong><\/h2>\n\n\n\n
For Google:<\/strong><\/h4>\n\n\n\n
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For Social & Digital Ads:<\/strong><\/h4>\n\n\n\n
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Final Thought<\/strong><\/h2>\n\n\n\n
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Drop your thoughts in the comments \u2014 let\u2019s unpack what real competition in search might look like.<\/p>\n\n\n\n\n