UK Watchdog Targets Google’s Search Monopoly in First Major Digital Rules Probe

The U.K.’s Competition and Markets Authority (CMA) has opened an investigation into Google’s search services, marking its first significant probe under the country’s new digital competition regulations. The inquiry aims to assess whether Google holds “strategic market status” (SMS) under the Digital Markets, Competition and Consumers Act (DMCC), which came into effect on January 1, according to CNBC.

The DMCC is designed to curb anti-competitive practices in the digital sector. If Google is found to have SMS, the CMA will have the authority to enforce measures aimed at promoting fair competition, potentially reshaping how the tech giant operates in the UK.

Sarah Cardell, CEO of the CMA, emphasized that the investigation is intended to ensure fair competition in the search market as advancements in artificial intelligence transform online search behavior.

“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,” Cardell said, per CNBC. She added that the investigation would also focus on ensuring a level playing field for businesses of all sizes, including rival search engines and advertisers.

The regulator’s move comes as concerns over Google’s dominance in the search industry grow globally. In the US, the Department of Justice (DOJ) is pursuing a legal case to break up Google’s search business, arguing that the company has maintained a monopoly in the sector.

Related: Japan’s Antitrust Authority Expected to Sanction Google Over Monopoly Practices

In the UK, Google accounts for more than 90% of all general search queries, with over 200,000 advertisers relying on its search advertising tools, according to the CMA. The watchdog expressed concerns that this level of dominance could stifle competition and limit opportunities for other businesses.

The CMA stated that effective competition in search is critical for economic growth, as it connects companies with customers, investors, and other businesses. “Search is vital for economic growth,” the regulator noted, adding that ensuring fair competition would also protect news publishers’ rights when their content is used by search engines.

Responding to the probe, a Google spokesperson told CNBC that the company would continue to work collaboratively with the CMA.

“Google Search supports millions of UK businesses to grow by reaching customers in innovative ways. The CMA’s announcement today recognizes that,” the spokesperson said. “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.”

Google also published a blog post on Tuesday, advocating for a regulatory framework that fosters innovation while remaining evidence-based. The tech giant warned that overly strict rules could hinder progress and reduce choices for both businesses and consumers.

Source: CNBC