The United Kingdom's Competition and Markets Authority (CMA) has launched a landmark investigation into Google's dominance in search and digital advertising, marking the first major case under the country's new competition rules. The inquiry aims to assess whether the tech giant's practices harm consumers, publishers, advertisers, and emerging competitors in an increasingly AI-driven search market.
Google controls more than 90% of general search queries in the UK and serves as a crucial gateway for businesses, news organizations, and advertisers. The CMA estimates that search advertising costs UK households approximately £500 annually, a figure that could decrease with effective competition.
The investigation follows the introduction of the Digital Markets, Competition and Consumers Act (DMCC) on January 1, 2025, granting the CMA expanded powers to regulate firms with "strategic market status" (SMS). Designation as an SMS would enable the regulator to impose measures designed to curb anti-competitive behavior.
Sarah Cardell, the CMA's chief executive, emphasized the significance of the probe, stating, "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. And for businesses, whether you are a rival search engine, an advertiser, or a news organization, we want to ensure there is a level playing field for all businesses, large and small, to succeed."
The investigation will scrutinize Google's collection of consumer data, its potential exploitation of market dominance to favor its shopping and travel services, and whether it has obstructed the entry of new competitors. Additionally, the CMA will assess the impact of Google's AI tools, including its Gemini assistant, on competition in search services.
A Google spokesperson responded, saying, "People across the UK trust Google search to help them find what they need. Google search supports millions of UK businesses to grow by reaching customers in innovative ways. 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."
The CMA's move coincides with global scrutiny of Big Tech. The U.S. Department of Justice recently sought to break up Google's dominance in the search market, including a push to divest its Chrome browser. In Europe, the EU is reportedly reassessing investigations into Google, Meta, and Apple under its own digital markets regulations.
Prime Minister Keir Starmer expressed support for fostering innovation while maintaining oversight. He announced plans to position the UK as a trusted partner for AI companies with a "pro-growth and pro-innovation" approach to regulation. However, there is mounting anti-regulation pressure from the U.S., with Meta CEO Mark Zuckerberg criticizing European regulatory efforts as stifling innovation.
The CMA's investigation will last up to nine months and could lead to significant regulatory action, including requiring Google to share data with competitors or giving publishers more control over their content. News organizations have voiced concerns about Google's use of their material without adequate compensation, a practice the CMA will also examine.
Emerging AI-based search technologies such as OpenAI and Perplexity add urgency to the inquiry, as the CMA fears Google's entrenched position may stifle innovation. Effective competition, the watchdog argues, is critical to ensuring that the benefits of these technologies are widely distributed.
The CMA has already signaled plans for a second investigation into another major technology company later this month. Under the new digital markets regime, firms with substantial market power and revenues exceeding £25 billion globally or £1 billion in the UK may face similar scrutiny.
