The UK’s decision to impose a new regulatory status on Google is not just a domestic issue; it’s a significant event that is likely to create a ripple effect, influencing the course of tech regulation across the globe. This move by the Competition and Market Authority (CMA) adds a powerful new voice to the international chorus calling for greater oversight of Big Tech.
By becoming one of the first countries to implement a proactive, ex-ante regulatory regime for digital markets, the UK is setting a new standard. The “strategic market status” (SMS) model, which focuses on setting forward-looking rules for dominant firms, will be closely watched by regulators in other countries, from Australia to Canada to Japan, who are considering similar approaches.
The specific remedies being considered in the UK, such as “choice screens” and rules on fair ranking, could also gain international traction. If these measures prove successful in fostering competition in the UK market, they could become a template for other jurisdictions to adopt, creating a more harmonized global approach to tackling Google’s market power.
This action also strengthens the hand of regulators in the US and the EU. As former CMA director Tom Smith noted, the UK is now able to “follow suit” with its international partners. This creates a powerful united front, making it much harder for tech giants to play different regulatory regimes off against each other.
While Google may view this as another national headache, the bigger picture is one of growing global regulatory convergence. The UK’s splash in the regulatory pond is set to create waves that will be felt in the headquarters of tech companies and the offices of regulators worldwide.