The UK’s Competition and Markets Authority (CMA) has initiated a groundbreaking investigation into Google’s search services under the new Digital Markets, Competition and Consumers Act, marking the first probe of its kind to examine the tech giant’s strategic market status in the digital landscape.

The investigation, set to conclude by October 13, 2025, aims to determine whether Google holds strategic market status in the UK’s search and search advertising sectors. With Google commanding 90% of UK searches and serving over a million British businesses through its advertising platform, the probe’s outcome could reshape the digital marketplace.

Sarah Cardell, CMA’s chief executive, emphasized the investigation’s significance, 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 highlighted the critical need to ensure these services deliver positive outcomes while maintaining fair competition, particularly as artificial intelligence continues to transform search capabilities.

The regulatory body will scrutinize several key aspects of Google’s operations, including whether the company employs fair terms and conditions when utilizing publisher content, potentially stifles innovation by competitors, or unfairly promotes its own services at the expense of rivals.

News publishers have raised significant concerns about Google’s practices, arguing that the company’s dominant position affects their ability to monetize content effectively. Changes to Google’s search algorithm can dramatically impact their referral traffic, threatening their operational sustainability.

The investigation follows the CMA’s September 2024 provisional finding that Google had abused its dominant position in the digital advertising market. This aligns with similar concerns raised by the US Justice Department regarding Google’s monopolistic control of digital ad technologies.

If found to have misused its market position, Google could face substantial penalties of up to 10% of its global annual turnover. The investigation parallels international efforts to regulate tech giants, similar to initiatives in Australia and Canada that require technology companies to negotiate fair compensation with news publishers.

The outcome of this pioneering investigation will likely set important precedents for future regulatory actions against major technology companies. It could fundamentally alter how search engines operate and interact with businesses and consumers, particularly as the digital landscape continues to evolve with advancing technologies.

As the CMA proceeds with its assessment, stakeholders across the digital ecosystem, including advertising firms, news publishers, and user groups, are being invited to provide evidence and insights. Their input will help shape the future of digital market regulation and potentially transform how online search and advertising services operate in the UK.

News Source: https://blog.google/around-the-globe/google-europe/united-kingdom/the-cmas-assessment-of-google-search/