Google Faces Antitrust Investigation by UK Watchdog.
The Competition and Markets Authority (CMA) in the United Kingdom has launched its first major antitrust investigation under the new Digital Markets, Competition and Consumers Act (DMCC). The probe is focused on Google’s dominance in the search market and whether it holds “strategic market status” (SMS). If designated as having SMS, the CMA would have the authority to impose changes to prevent anti-competitive behavior. The investigation aims to ensure a level playing field for businesses, advertisers, and consumers, especially as artificial intelligence is transforming the way people search online. Google currently accounts for over 90% of general search queries in the UK.
Sarah Cardell, the CMA’s chief executive, emphasized the importance of the probe, stating, “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 added, “And for businesses, whether you are a rival search engine, an advertiser, or a news organization, we want to ensure there is a level playing field for all businesses, large and small, to succeed”.
The CMA’s move follows a bid from the U.S. Department of Justice to force Google to divest its Chrome browser. The DOJ filed to break the internet giant up after finding it holds a monopoly in the search market. This is a breaking news story. Please refresh for updates.
Google’s dominant position in the UK search market is a primary point of concern for the CMA. Google accounts for more than 200,000 advertisers in the country using its search advertising tools. The CMA highlighted that search is “vital for economic growth,” explaining that its role in connecting companies with other businesses, investors, and customers means it is “critical” that competition works well.
Google responded to the investigation, stating, “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 company emphasized its commitment to supporting millions of UK businesses to grow by reaching customers in innovative ways.
The CMA will also look into concerns about “exploitative conduct” by Google, including its practice of collecting vast amounts of consumer data without informed consent, and its use of content by website publishers without paying them fairly. The investigation will scrutinize Google’s collection of consumer data, its potential exploitation of market dominance to favor its shopping and travel services, and whether it has obstructed the entry of new competitors.
