International

UK Competition Watchdog Launches Probe into Google’s Dominance in Online Search

Published

17 hours ago

Jan 14, 2025.

Dennis

CMA launches investigation into Google’s dominance in the UK search market and its potential impact on competition.
Probe focuses on Google’s data practices and whether it stifles innovation or favors its own services.
Investigation comes as part of the UK’s new digital market competition regime aimed at regulating powerful tech firms.

The UK’s Competition and Markets Authority (CMA) has launched an investigation into Google to examine whether the tech giant wields excessive power in the online search market.

With Google accounting for 90% of web searches in the UK, the CMA is assessing whether its dominance negatively impacts competition or consumer choice.

This marks the CMA’s first investigation under its new powers to regulate and enforce changes for firms deemed to hold “strategic market status” in digital markets. The watchdog aims to ensure Google delivers positive outcomes for individuals and businesses while fostering a competitive environment for its rivals.

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In response, 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.”

The probe adds to a growing list of global investigations into Google’s market influence, particularly in search and advertising technology. In the US, the government has suggested Google divest its Chrome browser to address competition concerns.

The CMA outlined potential remedies, such as requiring Google to share user data with competitors or granting publishers greater control over how their data is utilized in artificial intelligence (AI) applications.

“Millions of people and businesses across the UK rely on Google’s search and advertising services,” said CMA Chief Executive Sarah Cardell. “Whether you are a rival search engine, an advertiser, or a news organization, we want to ensure a level playing field for all businesses, large and small, to succeed. This is especially important as AI has the potential to transform the market.”

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The investigation follows the implementation of the UK’s digital market competition regime in January, which empowers the CMA to examine companies it suspects of dominating or holding strategic positions in specific sectors. To qualify for “strategic market status,” a firm must meet criteria such as generating over £1 billion in UK revenue or £25 billion globally and demonstrating entrenched market power in a digital activity.

The CMA’s inquiry will explore whether Google’s dominance in search stifles innovation, blocks market entry for competitors, or prioritizes its own services over others. It will also assess whether Google collects extensive user data without informed consent.

“Our role is to ensure people benefit from genuine choice and innovation in search services while being treated fairly, especially in terms of how their data is collected and stored,” Ms. Cardell added.