Britain's antitrust watchdog on Friday labeled Google a "strategic" player in the online search advertising market, paving the way for regulators to force the company to change its business practices to ensure more competition in that market.

The CMA has designated Google as having "strategic market status" in the search and search advertising markets, which means the company has such "a substantial and entrenched" position that it requires special regulations to ensure fair competition.

The designation is connected to the UK's new digital markets competition regime, which was enacted at the beginning of the year. Shortly after, the CMA announced it was conducting an investigation into whether Google should be designated with strategic market status. The outcome of that process is a resounding "yes."

The UK’s designation of Google Search with strategic market status could reshape how advertisers buy, measure, and compete for visibility across search and search ads.

Google will face tougher rules in the UK after the country’s CMA designated the company with so-called strategic market status (SMS).

It only took nine months, but the Competition and Markets Authority has designated Google Search with “strategic market status,” meaning it’s eligible for extra UK regulation. AI Mode has been factored in,