UK Regulators Target Google’s AI Search and Ad Dominance in New Crackdown

Google Faces Pressure as UK Regulator Closes In

The UK’s Competition and Markets Authority (CMA) is preparing to label Google with a Strategic Market Status designation, a move that would allow it to set binding rules on how Google operates in the country’s search and digital advertising space. This includes oversight of AI-generated search summaries and paid placement practices.

The CMA is not waiting for proof of misconduct. The Strategic Market Status framework gives it the power to enforce changes based on the scale and influence of a company alone. If finalized by the October 13 deadline, this designation could allow the CMA to reshape how Google ranks results, sells ads, and uses third-party content in AI features.

While the Gemini AI assistant is not currently part of this action, the CMA’s focus is clearly on AI elements within core search functions, specifically, the automated summaries that appear at the top of results pages. The regulator flagged concerns about how those summaries might be unfairly drawing from other publishers’ content and bypassing traditional links, which undermines both visibility and monetization for advertisers and content owners alike.

Search Results, AI Summaries, and the Ad Market in Flux

At the center of the CMA’s concerns is how Google’s AI-generated summaries are affecting the visibility of both organic search results and paid listings. These summaries often pull answers directly onto the search page, reducing the need for users to click through to publisher websites. That creates direct consequences for how traffic is distributed and how advertising is valued.

The CMA is also scrutinizing the rising cost of advertising on Google’s platform, along with the lack of transparency around how ad placements are determined. As more advertisers compete for limited space, concerns about market fairness have become harder to ignore.

For legal marketers, this could mean rethinking how visibility is achieved. If AI summaries continue to displace traditional listings, ranking high in search results may no longer be enough. Paid campaigns may require new strategies to ensure return on investment. The CMA’s inquiry signals growing concern that Google is using its control over search and advertising to shape outcomes that favor its own services.

Google Responds as Global Scrutiny Intensifies

Google has pushed back against the CMA’s proposals, calling them overly broad and warning that they could slow product development. The company argues that regulating AI-powered search features too aggressively could interfere with improvements meant to enhance user experience.

In a public statement, Google emphasized the importance of restraint, saying, “Evidence-based regulation will be essential to avoid turning a roadmap into a roadblock.” The company maintains that innovation in AI search tools depends on flexibility and cautions that early restrictions may create more problems than they solve.

The CMA remains unconvinced. It is preparing to enter a second phase of investigation in early 2026, which could expand into how Google handles relationships with publishers, the structure of its ad business, and the treatment of rival search engines.

What This Means for Legal Advertisers

The CMA’s next phase of review, scheduled for early 2026, could stretch well beyond AI summaries. Future scrutiny may include Google’s control over ad pricing, its dealings with publishers, and whether competing platforms are given a fair shot at visibility.

For firms investing in paid search or relying on organic rankings, the ground rules may soon change. If regulators enforce new standards around ranking transparency and ad placement, legal advertisers could see real impacts on cost, reach, and performance.

TSEG works exclusively with law firms to help them stay competitive on search, no matter how the platform changes. As AI tools reshape Google’s interface and regulators begin to influence how results appear, we track these developments closely to ensure our clients are not caught off guard. From content strategies that adapt to AI summaries to campaigns built for visibility in unpredictable markets, we help law firms adjust with precision. Reach out to us today.