UK Watchdog Launches Investigation into Google’s Dominance in Search and Advertising
The UK’s Competition and Markets Authority (CMA) has launched an investigation into Google’s dominance in search and advertising services under its new digital markets competition regime. This marks the first probe since the new regime came into effect on January 1st, 2025, granting the CMA authority to scrutinize firms deemed to hold “strategic market status” (SMS).
The CMA’s investigation will focus on whether Google’s overwhelming market share—over 90% of UK general search queries—harms competition and innovation. More than 200,000 UK businesses use Google for advertising, and its search services serve as a critical gateway for consumers and businesses alike. However, the CMA is concerned about barriers that might prevent rival companies and AI startups from entering the market.
Central to the investigation is whether Google leverages its position to “self-preference” its services, such as Google Shopping and Google Flights, over competitors. The CMA will also examine allegations of “exploitative conduct,” including collecting large amounts of consumer data without proper consent and using publishers’ content without fair compensation.
Potential outcomes of the investigation include new rules requiring Google to share its collected data with other businesses or giving publishers more control over how their data is used, particularly in Google’s AI tools. These measures aim to create a level playing field for competitors and foster innovation.
Sarah Cardell, Chief Executive of the CMA, highlighted the investigation's importance: “Millions of people and businesses across the UK rely on Google’s search and advertising services... It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal.”
Google has responded, stating it will cooperate with the investigation while cautioning against “overly prescriptive digital competition rules.” A company spokesperson emphasized the importance of balancing regulation with the ability to deliver cutting-edge services for users.
This investigation aligns with global scrutiny of Google’s market dominance. In the US, courts ruled last year that Google maintained an illegal search monopoly, while the EU continues to examine whether the company restricted developers from promoting alternatives.
The CMA has nine months to conclude its investigation and determine whether Google holds SMS in the UK’s search and advertising sectors. If confirmed, it could impose conduct requirements or recommend interventions to encourage competition.
This inquiry reflects a broader trend of regulating tech giants, as governments worldwide seek to balance innovation with fairness in digital markets. Experts suggest more investigations under the UK’s Digital Markets, Competition and Consumer Act could follow, targeting other major players in the tech industry.
The outcome of this probe could significantly impact how Google operates in the UK and set a precedent for addressing digital market dominance globally.
