History in the Making: UK’s New Digital Markets Act Gets Its First Test Case

History is being made in the UK’s approach to technology regulation, as the new Digital Markets, Competition and Consumers Act 2024 gets its first major test case: Google. The decision to designate the search giant with “strategic market status” is the inaugural use of the Act’s flagship powers, and its handling will set the tone for all future digital regulation.
Passed into law in 2024, the Act was specifically designed to give the Competition and Market Authority (CMA) the tools to deal with the unique challenges of digital markets, which are often dominated by a small number of powerful “gatekeeper” firms. The “strategic market status” (SMS) regime is the centerpiece of this new approach.
This first case is critical because it will establish precedents for how the CMA interprets and applies its new powers. How will the threshold for SMS be defined in practice? What kind of evidence will be required during the consultation process? How ambitious will the CMA be in designing its “conduct requirements”? The answers to these questions will create the playbook for future cases.
The process will be scrutinized by everyone. Google will mount a vigorous defense, testing the legal robustness of the new regime. Other tech giants, like Apple, Meta, and Amazon, will be watching intently, as they are likely to be next in line for a similar designation. Competitors, startups, and consumer groups will be looking to see if the new law delivers on its promise of creating a fairer digital economy.
Ultimately, the success or failure of the CMA’s action against Google will be a verdict on the effectiveness of the UK’s entire post-Brexit digital regulatory strategy. It is a high-stakes test that will shape the country’s relationship with Big Tech for years to come.