The Competition and Markets Authority (CMA) has launched a groundbreaking investigation into Google’s market dominance, marking the first probe under Britain’s newly established digital markets competition regime. The watchdog aims to determine whether the tech giant’s commanding position in search services warrants special regulatory oversight.
The investigation, announced on Tuesday, will scrutinise whether Alphabet-owned Google’s search and advertising activities deliver beneficial outcomes for UK consumers and businesses. This landmark probe emerges from fresh regulations that took effect this month, empowering the CMA to designate certain companies with “strategic market status” and subject them to stringent conduct requirements based on their digital market influence.
Google’s market presence is staggering, controlling more than 90 per cent of general search queries in the UK, with over 200,000 British advertisers utilising its search advertising platform. The CMA’s chief executive, Sarah Cardell, emphasised the regulator’s commitment to ensuring fair competition and consumer protection in the digital landscape.
The investigation’s scope encompasses several critical areas, including Google’s potential use of market position to stifle innovation, particularly in artificial intelligence, and its handling of consumer data and publisher content. The CMA has been granted a nine-month window to determine Google’s status designation.
Under the new framework, companies qualifying for strategic market status must meet specific criteria, including UK turnover exceeding £1 billion or global turnover above £25 billion, along with demonstrating substantial market power. The designation carries significant consequences, with potential fines of up to 10 per cent of global turnover for rule violations.
Google has responded diplomatically, highlighting its search service’s role in supporting millions of UK businesses and expressing willingness to engage constructively with the CMA. The probe represents the latest regulatory challenge for the tech giant, following the US Department of Justice’s recent efforts to force Google to divest its Chrome browser.
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