Aleksei - stock.adobe.comNewsCMA kicks off investigation into Google search engine dominanceThe Competition and Markets Authority is using powers that came into force at the start of the year to assess Googles reachByCliff Saran,Managing EditorPublished: 14 Jan 2025 15:44 The Competition and Markets Authority (CMA) has kicked off the new year with an investigation of Google Search under the new digital markets competition regime, which came into force on 1 January 2025.It is seeking to determine if Google has strategic market status in search and search advertising activities, and whether these services are delivering good outcomes for people and businesses in the UK.The CMA said the investigation would assess Googles position in search and search advertising services, and look at how this impacts consumers and businesses including advertisers, news publishers and rival search engines.Google is used for 90% of all general search queries in the UK, and more than 200,000 UK advertisers use its search advertising.Given Googles importance as a key digital service for people, businesses and the economy, the CMA said it wants to ensure that competition works well. According to the CMA, effective competition could keep down the cost of search advertising for businesses, equivalent to nearly 500 per household per year, which it said could lower prices across the economy.In November 2024, the UK Competition Appeal Tribunal (CAT) certified a 7bn collective action against Google. The specialist UK court will require Google to defend its long-standing conduct in the search engine market after approving the landmark legal action brought by Nikki Stopford, co-founder of Consumer Voice, and legal firm Hausfeld & Co LLP.The claim accuses Google of exploiting its dominance in the search market to increase advertising costs. At the time, Stopford said: Google has been warned repeatedly by competition regulators, yet it continues to rig the market to charge advertisers more, which raises the prices they charge consumers. This action seeks to promote healthier competition in digital markets, and to hold Google accountable and ensure that consumers are compensated.Meanwhile, in the US, the Department of Justice (DoJ) is seeking to force the search engine giant to offload its Chrome browser.While the collective action against Google is likely to run for several years, the CMA has set a deadline of October 2025 to complete its initial investigation.The regulator plans to assess how competition is working and if Google is using its position to prevent innovation by others. This includes whether barriers to entry are preventing other competitors from entering the market in particular, whether Google can shape the development of new AI services and interfaces, including answer engines, in ways that limit the competitive constraint they impose on Google Search.The CMA is also planning to investigate whether Google is using its position in the market to self-preference its own services, such as specialised search services covering shopping and travel.Beyond search engine and search engine advertising, the CMAs investigation is also looking at whether Google is collecting and using large quantities of consumer data without informed consent, and whether it is using publisher content without fair terms and conditions, including payment terms.Sarah Cardell, chief executive of the CMA, said: Millions of people and businesses across the UK rely on Googles search and advertising services. Thats why its so important to ensure these services are delivering good outcomes for people and businesses, and that there is a level playing field, especially as AI [artificial intelligence] has the potential to transform search services.Its 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. And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed.If Google is found to have too much control over the internet search and search advertising markets, the CMA could require it to make the data it collects available to other businesses or give publishers more control over how their data is used including in Googles AI services.Read more stories about GoogleMicrosoft and Google in war of words following launch of anti-competitive cloud coalition: Microsoft claims the newly formed Open Cloud Coalition is not all it seems, and merely a front for Google Cloud to mislead competition authorities over the state of the public cloud market.CMA gets ready to take on Apple and Google over mobile browsing: Preliminary investigation finds a lack of fairness and choice of mobile browsing on iOS devices like the iPhone is holding back innovation.In The Current Issue:Interview: Wendy Redshaw, chief digital information officer, NatWest Retail BankPreparing for AI regulation: The EU AI ActDownload Current Issue