Google Slams CMA Decision as ‘Disproportionate’ Under UK’s New Digital Law

In Focus

• Google slams CMA decision, calling it disappointing, disproportionate, and unwarranted
• CMA designates Google’s mobile platform under the UK’s new digital markets regime
• The decision marks one of the first major uses of the CMA new digital law
• Tech industry eyes implications for future UK digital markets regulation Google cases

CMA Targets Google’s Mobile Platform Under New Digital Law

In a move that has stirred reactions across the global tech sector, the UK’s Competition and Markets Authority (CMA) officially designated Google’s mobile platform business as having Strategic Market Status (SMS) under the nation’s new digital competition regime.

The decision, reported by UKTN, represents one of the first major applications of the CMA new digital law and places Google under enhanced oversight within the UK market.

The CMA’s classification grants it expanded authority to impose conduct rules and interventions intended to promote fairer competition in digital markets. The regulator cited Google’s control over key components of the mobile ecosystem, including Android and the Play Store, as central to its decision.

Google Pushes Back Against Regulatory Oversight

Reacting strongly to the CMA’s announcement, Google issued a firm response, describing the ruling as excessive and unjustified. The tech company stated that its open mobile ecosystem provides broad consumer choice and supports significant UK economic activity.

Google added that the SMS label introduces a set of uncertain and potentially restrictive rules that could impact its ability to operate efficiently within the region. The company emphasized that 91% of UK Android users reported being “satisfied” or “very satisfied” with their mobile devices, a figure the CMA itself had acknowledged in previous studies. In other news, Google has launched Gemini Enterprise, an AI-powered platform designed to bring Google AI to every workflow.

Industry Divided on the CMA’s Approach

The decision has sparked debate within the broader technology and app development community. Supporters argue that the move could create a more competitive environment for smaller developers and alternative app distribution platforms. Others, however, caution that stringent regulation may hinder innovation and add operational complexity for global firms operating in the UK.

The Google UK regulatory pushback underscores growing friction between major technology companies and regulators worldwide. Similar discussions are underway in the United States and European Union, where competition authorities are re-evaluating how large platforms influence pricing, app distribution, and payment systems. Recently, Google is seeking news groups for a new AI licensing project, sources close to the US search giant say.

Implications for Digital Market Regulation

The CMA’s decision marks a significant test case for the UK digital markets regulation Google framework, which was introduced under the Digital Markets, Competition and Consumers Act. The law aims to prevent anti-competitive practices among firms deemed to hold substantial market power in digital ecosystems.

For Google, the CMA designates Google mobile platform status as an SMS entity means it must now comply with additional conduct requirements and transparency measures. These could include allowing rival app stores, reducing app store fees, or modifying default app settings, although the CMA has not yet specified the precise remedies.

For businesses and developers, the outcome of this case may shape future policy in the UK’s digital economy. B2B stakeholders are monitoring how the balance between regulation and innovation unfolds, as changes to mobile ecosystems could affect pricing structures, platform access, and developer revenue models.

A Defining Moment for UK Tech Regulation

The clash between Google slams CMA decision and the UK’s competition authority reflects a broader global debate about how governments regulate large digital platforms. For the UK, this case represents the beginning of a more assertive regulatory approach designed to enhance fairness and consumer choice.
For Google, it signals a period of adjustment and negotiation as it navigates new compliance requirements under the CMA new digital law. The eventual outcomes will likely influence not only Google’s UK operations but also the broader international landscape for digital competition policy.