The Competition and Markets Authority (CMA) has launched an investigation into Google's commanding position in the UK market. This inquiry aims to determine if Google's dominance in web searches, where it holds a 90% share, is stifling competition and limiting choices for consumers. The investigation will explore whether Google leverages its search supremacy to hinder competitors' innovation or entry into the market.
The CMA's scrutiny extends to allegations of "self-preferencing," where Google might favor its own services over rivals'. The regulator's objective is to ensure that Google delivers beneficial outcomes for both individuals and businesses. The investigation seeks to maintain a level playing field for competitors, regardless of size or industry. Given Google's substantial turnover in the UK, which exceeds £1 billion, the CMA's inquiry fulfills the criteria to investigate firms with potential strategic market status.
Sarah Cardell, the CMA's chief executive, emphasized the importance of this investigation for consumers and businesses alike.
"Millions of people and businesses across the UK rely on Google's search and advertising services," – Sarah Cardell
The investigation, set to span nine months, will also consider whether Google collects extensive user data without obtaining proper, informed consent. If the CMA concludes that Google holds strategic market status, it could impose behavioral rules or take measures to enhance competition. These potential interventions include sharing data Google gathers with other businesses or granting publishers greater control over their data usage in AI features.
This inquiry is part of a broader series of global investigations into Google's dominance in search and advertising technology. Notably, the digital market competition regime, effective since January, empowers the CMA to examine firms with strategic market status.
In addition to the UK's scrutiny, Google's Chrome browser faces challenges in the US, where government agencies advocate for its sale to address competition concerns. These developments underscore the mounting global pressure on Google regarding its vast influence.
"And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed." – Sarah Cardell
As the investigation unfolds, Google expressed its commitment to cooperating with the CMA.
"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." – Google