Competition and Markets Authority (CMA) in the UK launches investigation into Google’s position in search and search advertising
The CMA has launched a major new investigation into the search engine Google. The wide-ranging scope includes an assessment of Google’s position in search and search-advertising services, as well as how this impacts businesses and consumers – including advertisers, rival search engines and news outlets.
The investigation is the CMA’s first ‘strategic market status (SMS) designation investigation’ under the new digital markets competition regime, which came into force on January 1, 2025.
The CMA notes that Google services generate multiple benefits for the UK, not least as a gateway through which millions of people access and navigate the internet. In the UK alone, Google accounts for more than 90% of all general search queries, while more than 200,000 UK companies make use of its search advertising. The word ‘google’ has become synonymous with ‘search online’.
However, there are concerns that such market dominance has negative effects for users, as well as businesses and the wider economy. Some argue that more effective competition could provide greater choice, new and innovative services and save advertisers money.
There are also concerns about changes Google has made to its services, that Google’s dominance could shape or perhaps even dictate the development of AI.
Under the new digital markets competition regime, the CMA can designate firms with SMS in relation to a particular digital activity. In doing so, it can also impose conduct requirements or propose interventions to promote competition.
The investigation into Google is expected to take some nine months, engaging with a range of stakeholders including advertising firms, news publishers and user groups. It will also, of course, gather evidence from Google itself. A decision is expected by October 2025.
This is not the only such investigation into Google’s dominant position. In August last year, a judge in the US ruled that Google acted illegally to maintain its monopoly in online searching and related advertising. There have been calls for the company to be broken up in some way, such as by selling the sizeable part of the business devoted to the browser Chrome.
In September, the European Court of Justice (ECJ) ruled that the tech giant must pay a a €2.4bn (£2bn) fine originally issued to it by the European Commission in 2017 for anti-competitive practices, in this case relating to its market dominance of shopping comparison services.
Of the new investigation, a spokesperson for Google said in a statement: ‘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.’
Sarah Cardell, Chief Executive of the CMA, says: ‘Millions of people and businesses across the UK rely on Google’s search and advertising services – with 90% of searches happening on their platform and more than 200,000 UK businesses advertising there. That’s why it’s so important to ensure these services are delivering good outcomes for people and businesses and that there is a level playing field, especially as AI has the potential to transform 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. 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.’
In related news:
AI is forcing organisations to rethink sustainability commitments
‘Must do better’: Information Commissioner on public sector data breaches
Age verification on phones will boost high street and hospitality – government
Leave a Reply