U.K. Regulator Threatens Google’s Search Dominance, Alphabet Shares Stagnate

Alphabet (GOOGL) shares showed muted movement as the U.K.'s Competition and Markets Authority (CMA) designated Google with 'strategic market status' for its entrenched dominance in search and search advertising. The 10-month investigation could lead to enforced competition measures, including mandatory alternative search engine options for users.

The CMA clarified the designation doesn't imply wrongdoing but opens the door to 'proportionate interventions' later this year. Google's AI Mode and AI Overviews fall under the ruling, though Gemini AI remains exempt. Market analysts note this poses revenue risks given search's contribution to Alphabet's bottom line.

'Competition in digital markets unlocks growth for businesses of all sizes,' said CMA's Will Hayter, signaling regulatory appetite to reshape the search landscape. The MOVE follows global scrutiny of Big Tech's market power, though immediate operational impacts remain uncertain.