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UK’s competition watchdog to investigate Google over search dominance
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  • UK’s competition watchdog to investigate Google over search dominance

UK’s competition watchdog to investigate Google over search dominance

FP Staff • January 15, 2025, 12:27:11 IST
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UK’s CMA’s investigation is focusing on how Google’s dominance in the market affects consumers, businesses, news publishers, and its rivals. With Google controlling more than 90% of searches in the UK, the CMA believes this dominance could be skewing the playing field

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UK’s competition watchdog to investigate Google over search dominance
The CMA also points out that search advertising costs UK households nearly 500 pounds a year, a sum that could potentially be reduced if more competition were allowed to thrive. Image Credit: Reuters

The UK’s competition watchdog, the Competition and Markets Authority (CMA), has launched an investigation into Google’s search and advertising practices. The focus is on how Google’s dominance in the market affects consumers, businesses, news publishers, and its rivals. With Google controlling more than 90 per cent of searches in the UK, the CMA believes this dominance could be skewing the playing field.

The CMA also points out that search advertising costs UK households nearly 500 pounds a year, a sum that could potentially be reduced if more competition were allowed to thrive. The investigation will examine whether Google is making it harder for competitors to break into the market, as well as whether its data collection practices are fair. Additionally, the CMA will look into whether Google is using its search engine to push its own services — like shopping and travel — while sidelining others.

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If the investigation finds wrongdoing, it could have serious consequences for Google. The company might be required to share its vast data troves with other businesses or give publishers more control over how their content is used, especially as AI systems like Google’s Gemini continue to grow.

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The new rules for Big Tech

This is the first investigation under the UK’s new digital competition rules, which kicked in at the start of 2025. These new regulations give UK authorities more power to issue conduct requirements to tech companies, something that could fundamentally change the way big players like Google operate in the country. It’s a significant step as the UK pushes to regulate tech giants and make sure smaller companies aren’t left in the dust.

The CMA’s investigation will take a close look at Google’s search engine, Google Ads, and its new Gemini AI. Sarah Cardell, the CMA’s CEO, explained that the aim is to ensure people get more choice and fairness when it comes to search services, and that businesses, no matter their size, can compete on a level playing field.

The bigger picture

The timing of this investigation is interesting, given the growing pushback against tech regulation, especially in the US. As Donald Trump gets ready to take office, figures like Meta’s Mark Zuckerberg have criticised European countries for imposing what they call excessive regulations, stifling innovation. On the other hand, UK Prime Minister Keir Starmer has made it clear that the UK wants to foster AI development and innovation, positioning the country as a trusted partner for AI companies with a “pro-growth” approach.

At the same time, the EU is reassessing its own investigations into US tech giants, including Google, Meta, and Apple. According to reports, the scope of these investigations could be narrowed or even scaled back, reflecting the shifting regulatory atmosphere.

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Google’s take

In response to the investigation, Google argued that UK users trust its search engine, and that it helps millions of businesses connect with customers in innovative ways. A spokesperson emphasised that Google’s search services are vital for economic growth, and said the company would continue to work closely with the CMA to ensure any new rules benefit all types of websites.

With the CMA’s investigation into Google underway, and more probes on the horizon, it’s clear that the UK is serious about regulating Big Tech. Whether or not these changes will lead to a more level playing field in the digital space remains to be seen, but the investigation certainly signals that the government is paying closer attention to how tech giants operate.

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