LONDON - The UK's Competition and Markets Authority (CMA) announced today that it has initiated a strategic market status (SMS) designation investigation into Google (NASDAQ:GOOGL)'s search and search advertising services. The inquiry aims to determine if Google holds a dominant position in these sectors and if their operations yield favorable outcomes for UK consumers and businesses.
Google, which handles over 90% of all general search queries in the UK, is under scrutiny for potentially stifling competition and innovation in the search and search advertising markets. The CMA's probe will explore whether Google's market behavior hinders new entrants and innovation, particularly in the development of new AI services and interfaces, such as 'answer engines'.
The investigation will also examine if Google leverages its market power to prefer its own services, such as specialized search services for shopping and travel, and whether it engages in exploitative conduct, such as collecting and using large quantities of consumer data without informed consent or using publisher content without fair terms.
Potential remedies could include mandating Google to make its collected data accessible to other businesses and giving publishers more control over the use of their data, including in Google's AI services. The CMA's approach to this investigation will be proportionate and transparent, with a statutory deadline set for Monday, October 13, 2025.
Sarah Cardell, Chief Executive of the CMA, emphasized the importance of ensuring that Google's services are beneficial for users and businesses, and that a level playing field is maintained, especially as AI begins to revolutionize search services. She stated, "It's our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal."
The CMA's action is part of a broader international effort, with authorities in the US, Europe, and Australia also examining Google's search activities. The CMA is collaborating with these authorities as it conducts its investigation.
This investigation is based on a press release statement and marks the CMA's first SMS designation investigation under the new digital markets competition regime that became effective on January 1, 2025. Interested parties are invited to comment on the CMA's Google Search investigation until Monday, February 3.
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