“Strategic Position”: How the UK Legally Justified Its Google Intervention

The entire legal basis for the UK’s intervention against Google rests on the concept of a “strategic position.” This term, drawn from the new Digital Markets Act, is the legal key the Competition and Market Authority (CMA) used to unlock its new powers, and its application to Google was justified by overwhelming evidence.
To designate a company with “strategic market status,” the CMA had to prove that it has a position of significant, entrenched market power in a digital activity. The core evidence presented by the CMA was Google’s staggering “more than 90% of searches in the UK.”
This figure demonstrates that Google is not just a market leader but a market-definer. It acts as the primary gateway to the internet for almost the entire UK population. This, in the eyes of the regulator, is the very definition of a “strategic position.” The company’s actions don’t just affect its own business; they shape the entire digital ecosystem, from publishing to e-commerce.
By successfully arguing that Google’s market share gives it this strategic position, the CMA met the legal threshold required by the new law. This allowed it to proceed with the designation without having to prove any specific instance of anti-competitive conduct, which is a key feature of the new, proactive regime.
This concept of a “strategic position” is the foundation of the UK’s new approach to tech regulation. It shifts the focus from punishing bad behavior to managing the inherent risks posed by any company that holds such a critical and powerful place in the digital economy.