UK Antitrust Regulator Probes Google's Search Dominance

The Competition and Markets Authority (CMA) in the UK has launched its first strategic market status (SMS) designation investigation under the new digital markets competition regime, focusing on Google's search and search advertising services. The investigation aims to assess whether Google has SMS in the UK search and search advertising sectors and, in parallel, consider whether conduct requirements should be imposed in the event of a final designation decision.

Google's innovative services have generated significant benefits in the UK, with its search services acting as a gateway through which millions of people and businesses access and navigate the internet. However, the CMA is concerned about the potential for Google to use its dominant position to prevent innovation by others, shape the development of new AI services and interfaces, and self-preference its own services. The investigation will also examine potential exploitative conduct, such as the collection and use of large quantities of consumer data without informed consent and the use of publisher content without fair terms and conditions.

As of July 2023, online search engine Bing accounted for 10.51 percent of the global desktop search market, while market leader Google had a share of around 81.95 percent. Meanwhile, Yahoo's market share was 2.67 percent. In the UK, Google accounts for more than 90 percent of all general search queries, and more than 200,000 advertisers use the firm's search advertising tools. Search is vital for economic growth, facilitating businesses connecting with other businesses, investors, and customers. Effective competition ensures people benefit from greater choice, new and innovative services, and have control over their data. Search services are also important as a route to access the news, ensuring people can access a wide range of content and that publishers are treated fairly for the use of their content.



The CMA's investigation will assess whether Google has SMS in the UK search and search advertising sectors and, in parallel, consider whether conduct requirements should be imposed in the event of a final designation decision. The issues that will form part of the CMA's investigation include weak competition and barriers to entry and innovation in search, potential leveraging of market power and ensuring open markets, and potential exploitative conduct. The CMA will take a proportionate and transparent approach to this investigation, which must be completed within 9 months. It will now focus on engaging a wide range of stakeholders, including advertising firms, news publishers, and user groups, as well as gathering evidence from Google before reaching a decision by October 2025.

Sarah Cardell, Chief Executive of the CMA, stated that millions of people and businesses across the UK rely on Google's search and advertising services, with 90 percent of searches happening on their platform and more than 200,000 UK businesses advertising there. She emphasized the importance of ensuring these services are delivering good outcomes for people and businesses and that there is a level playing field, especially as AI has the potential to transform search services. The CMA wants 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. For businesses, whether you are a rival search engine, an advertiser, or a news organization, the CMA wants to ensure there is a level playing field for all businesses, large and small, to succeed.

In conclusion, the CMA's investigation into Google's search and search advertising services is a critical step in promoting competition and protecting consumers and businesses in the UK. By assessing Google's market position and considering potential conduct requirements, the CMA aims to ensure that search services deliver good outcomes for people and businesses and that there is a level playing field for all market participants. As the investigation progresses, it will be essential to monitor the developments and assess the potential impacts on Google's market position and share price.