Google may need to alter its search services in the UK to promote increased competition, according to the competition watchdog.

The Competition and Markets Authority (CMA) is examining the American tech giant under a new law that allows the regulator to require changes if a firm is deemed to have excessive power in a specific market.

Google dominates more than 90 percent of searches in the UK, with 200,000 companies utilizing the search advertising offered by the company to connect with consumers.

The CMA has indicated its intention to classify Google with "strategic market status," which will subject it to unique requirements under the recent UK regulations.

A comparable tech competition law in the European Union, known as the Digital Markets Act, carries the risk of significant financial penalties.

In January, the UK's CMA initiated an investigation into Google's prevailing status in the search engine sector and the effects it has on both consumers and businesses.

This followed the implementation of Britain's Digital Markets Competition Regime in 2025, which the regulator stated on Tuesday "can help unleash opportunities for innovation and growth."

A spokesman for Google on competition, Oliver Bethell, cautioned that the CMA's update, which precedes a final decision expected in October, "could profoundly affect businesses and consumers in the UK."

He further commented in a statement that "the positive influence of Google Search on the UK is indisputable. Our tools and services generate billions of pounds (dollars) each year for the UK."

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While acknowledging that "Google Search has provided immense advantages," CMA chief executive Sarah Cardell remarked that "there are ways to enhance the openness, competitiveness, and innovation of these markets."

The regulator indicated its plan to seek input on possible changes, such as "ensuring individuals can effortlessly select and alternate between search services — including possible AI assistants — by mandating default choice screens legally."

Another suggestion is to ensure that "Google's ranking and presentation of search results are fair and non-discriminatory."

Bethell raised concerns that "the broad and unfocused nature of the CMA's considerations includes a spectrum of interventions being evaluated before any evidence has been presented."

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The CMA emphasized that "Google Search accounts for over 90 percent" of online inquiries in the UK.

Additionally, it highlighted that more than 200,000 businesses in the UK depend on Google search advertising to engage with customers.