The UK’s competition watchdog, the Competition and Markets Authority (CMA), has launched a significant investigation into Google to examine its dominance in the online search market. With Google accounting for a staggering 90% of web searches in the UK, the CMA is focused on determining whether this dominant position harms competition and limits choices for users.
accounting for a staggering 90% of web searches in the UK, the CMA is focused on determining whether this dominant position harms competition and limits choices for users.
This investigation marks the CMA’s first major action following the acquisition of new powers to investigate and enforce changes in firms deemed to have “strategic market status” in digital markets. The CMA aims to ensure that Google delivers beneficial outcomes for consumers and businesses while fostering a fair competitive landscape for rival companies.
In response to the investigation, Google stated, “We will continue to engage constructively with the CMA to ensure that new rules benefit all types of websites, and still allow people in the UK to benefit from helpful and cutting-edge services.”
Global Scrutiny
This investigation is part of a broader global scrutiny that Google faces regarding its extensive influence in search and advertising technology. In the United States, for instance, government authorities have proposed that Google divest its Chrome browser to mitigate competition concerns.
The CMA is considering potential measures to improve competition, including requiring Google to share data it collects with other businesses and giving publishers greater control over how their data is used, particularly concerning Google’s artificial intelligence (AI) features. Sarah Cardell, the CMA’s chief executive, emphasized the importance of a level playing field, stating, “Millions of people and businesses across the UK rely on Google’s search and advertising services.”
New Regulatory Framework
The CMA’s investigation aligns with the recent introduction of the digital market competition regime in January, which empowers the authority to investigate companies it believes dominate or hold a key strategic position in specific sectors. To be classified as having “strategic market status,” a company must meet several criteria, including having a UK turnover exceeding £1 billion or a global turnover surpassing £25 billion.
The CMA is set to assess whether Google uses its search dominance to stifle competition, prevent rivals from innovating, or engage in “self-preferencing,” where it promotes its own services over competitors. Additionally, the investigation will evaluate whether Google is collecting significant amounts of user data without adequate consent.
Commitment to Fair Competition
Cardell highlighted the CMA’s commitment to ensuring users enjoy a full spectrum of choices and innovations in search services. “It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal— for example, in how their data is collected and stored,” she stated.
The CMA has nine months to conduct its investigation and will have two options should it determine that Google holds strategic market status: imposing rules governing its behavior or implementing measures to enhance competition. This investigation comes at a time when UK Prime Minister Sir Keir Starmer has lauded AI’s potential to transform public services, reinforcing the importance of a competitive market that fosters innovation and supports the economy.
Conclusion
The CMA’s investigation into Google underscores a growing recognition of the need to regulate dominant players in digital markets, ensuring fair competition and protecting consumer interests in an increasingly complex online landscape.
