CMA Launches Investigation into Google’s Dominance in Search Services
The Competition and Markets Authority (CMA) has initiated a significant investigation into Google’s dominance in search and search advertising services, marking the first strategic market status (SMS) designation investigation under the new digital markets competition regime that came into effect on January 1, 2025. This inquiry is crucial for understanding how Google’s extensive influence affects consumers, businesses, and the overall digital landscape in the UK.
Google’s search services play a vital role in the UK economy, with more than 90% of general search queries conducted through its platform. This massive market share translates to over 200,000 advertisers utilizing Google for search advertising. Search functionality is not merely a digital convenience; it serves as a critical channel for businesses to connect with customers, investors, and each other. The data generated through searches also fosters the development of new artificial intelligence (AI) products and services, driving innovation across various sectors.
Given the centrality of search to daily life and commerce, ensuring robust competition is imperative. Healthy competition leads to increased choices for consumers, fosters innovation, and grants users better control over their data. Additionally, effective competition in search can provide access to diverse news content and ensure fair treatment for publishers using Google’s platform. For businesses, a well-functioning market can reduce search advertising costs—estimated at nearly £500 per household annually—thus potentially lowering prices for consumers across the board.
The CMA’s investigation will focus on several key areas related to Google’s market power. These include:
-
Competition and Innovation: The CMA will examine whether Google’s position hinders competition and innovation, particularly regarding barriers that may prevent new entrants, especially AI startups, from accessing the search market.
-
Market Power and Self-Preference: Investigators will look into whether Google leverages its dominant position to prioritize its services over those of competitors, especially in specialized search areas like shopping and travel.
-
Data Use and Publisher Rights: The investigation will scrutinize how Google collects and utilizes vast amounts of consumer data, particularly concerning informed consent. Additionally, it will assess whether publishers receive fair terms for their content.
In the event that Google is designated with SMS status, the CMA could impose conduct requirements aimed at promoting competition, such as mandating that Google share collected data with other businesses or granting publishers more autonomy over how their data is utilized in Google’s services.
The CMA has committed to a transparent and proportionate approach to this investigation, which is expected to conclude within nine months, by October 2025. Throughout the process, the CMA will engage with a variety of stakeholders, including advertisers, news publishers, and user groups, while also gathering evidence from Google.
Sarah Cardell, Chief Executive of the CMA, emphasized the importance of this investigation, highlighting that millions of people and businesses rely on Google’s services. It is essential to ensure that these services yield positive outcomes, promote innovation, and maintain a level playing field for all businesses, regardless of size.
Ultimately, this investigation represents a critical step in safeguarding competition in the digital marketplace and ensuring that consumers and businesses can fully benefit from a dynamic and equitable search environment. More information about the investigation can be found on the CMA’s case page, and stakeholders are encouraged to provide their input until February 3.
