The Competition and Markets Authority (CMA) has initiated an investigation into Google to determine if its search and advertising services are producing fair outcomes within the º£½ÇÊÓƵ.
Today, the watchdog declared the commencement of its inaugural "strategic market status designation investigation" under the new Strategic Market Status (SMS) regime that came into effect on 1 January this year, as reported by .
The inquiry will scrutinise the effects of Google’s services on º£½ÇÊÓƵ consumers and businesses, including publishers, search engine rivals, and advertisers. With Google's search services commanding over 90 per cent of search queries in the º£½ÇÊÓƵ, the CMA emphasised the importance of ensuring these services benefit both businesses and consumers.
"Millions of people and businesses across the º£½ÇÊÓƵ rely on Google’s search and advertising services – with 90 per cent of searches happening on their platform and more than 200,000 º£½ÇÊÓƵ businesses advertising there," said Sarah Cardell, CMA Chief Executive. "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."
The investigation aims to guarantee that individuals enjoy access to diverse services and full control over their data, while also fostering innovative services and preventing biased content, according to the CMA.
The Competition and Markets Authority (CMA) in the º£½ÇÊÓƵ is set to initiate a probe with the objective of maintaining competitive advertisement costs, reducing consumer prices, and affording emerging enterprises an opportunity to vie with established tech entities. The CMA has indicated its intent to conclude the inquiry within approximately nine months.
"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," said Cardell. "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."
This investigation is part of a wider effort to rein in big tech firms, as signified by Google's 2024 court defeat in the US over claims that it unlawfully sustained its internet search monopoly.
The Department of Justice (DOJ), together with 17 states, claimed Google's parent company Alphabet was dominating digital ad technology and sought a breakup of the Silicon Valley giant. In a recent development, the EU’s supreme court determined that Google must pay a fine of €2.4bn (£2bn) for exploiting its market dominance, particularly regarding its comparison shopping service— a decision which Google professed to be "disappointed" about.
